On October 1, Black Company receives a 6% interest-bearing note from Reese Company to settle a $17,000 account receivable. The note is due in six months. At December 31, Blac should record interest revenue of Оа. S252 Оb. s255 Oc. $262 Od. $265

On October 1, Black Company receives a 6% interest-bearing note from Reese Company to settle a $17,000 account receivable. The note is due in six months. At December 31, Blac should record interest revenue of Оа. S252 Оb. s255 Oc. $262 Od. $265

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A loan has been made by the bank on 31st October for 60 days to Company Trading LLC. Company Trading…

A: Journal Entry: It is used to record the business transactions of an enterprises.

Q: On March 1, Year 1, a company loans cash to another company and accepts a note in return. The terms…

A: 1. Journal Entry for the LoanWhen the company makes the loan and accepts the note in return on March…

Q: On October 1, 2010, the company deposits 12.000 TL in a bank account for 1 year at 10%. Which entry…

A: Accrued revenues are those revenues which are earned but not received in the business. These are…

Q: A 60-day, 6% note for $26,400, dated May 1, is received from a customer on account. The maturity…

A: Formula: Maturity Value of Note = Face Value of Note + Interest on Note Maturity Value of Note =…

Q: . At December 31, Black should record interest revenue of

A: Given information is: Value of note = $18600 Interest rate = 8% Issue date = October 1

Q: adjusting entry should be made

A: Interest revenue = Amount of note receivable * Rate of interest * Number of months expired/12 months…

Q: Carroll Company accrued interest of $300 on a $6,000, 10% note payable at December 31. The annual…

A: Lets understand the basics.A journal entry is a record of a company's financial transactions kept in…

Q: On June 6, Nova Inc. accepts a $21,500 note from a customer in payment of an overdue account. The…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: On March 1, 20x4, Banco Popular agrees to lend $ 100.00 to your company through a written contract…

A: Note Payable is a written contract to pay a predetermined borrowed amount along with interest within…

Q: On April 1, 20X1, Nelsen Inc. accepts a $100,000, 8% note. The note receivable and interest are due…

A: Note Receivable: It implies a promissory note which is written by the borrower in the favor of…

Q: On October 1, Black Company receives a 8% interest-bearing note from Reese Company to settle a…

A: Lets understand the basics. For calculating interest revenue needs to record, we need to use below…

Q: On June 19, The business purchases inventory of 220.000 TL including 10% VAT. The business endorses…

A: On June 19, Business purchases inventory Cost of purchase of inventory = 220000 TL Including 10% VAT…

Q: On November 7, Mura Company borrows $150,000 cash by signing a 90-day, 10%, $150,000 note payable. -…

A: The accrued interest is the interest due but not paid yet. It is recorded as current liabilities.

Q: A company borrowed 20.000 TL from the bank signing a 9%, 3-month note on September 1. Principal and…

A: >The adjusting entries are made at the end of period to provide for correct balances for various…

Q: On December 1, Daw Company accepts a $32,000, 45-day, 9% note from a customer. (1) Prepare the…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: Night Corp. receives a $4,000, 3-month, 8% note from Day Corp. in settlement of a past due account…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: On November 7, Mura Company borrows $270,000 cash by signing a 90-day, 7%, $270,000 note payable. 1.…

A: The objective of the question is to calculate the accrued interest payable on December 31 and to…

Q: Al-Ahmadi Co. signed a three-month, 9%, note payable in the amount of OMR75,000 on Dec 1. The note…

A: Formula: Interest amount = Principal amount x interest rate. Multiplying interest rate with…

Q: Assume that Wolder Company lends ABB Company $45,000 on June 1, accepting a five month, 5% interest…

A: Note means the written instrument which is accepted by one person promising the other person to pay…

Q: Reality Corporation borrowed $175,000 on April 1. The note requires interest at 12% and principal to…

A: From April 1 to December 31 = 9 months Interest has been accrued for 9 months.

Q: A 60-day, 6% note for $24,000, dated May 1, is received from a customer on account. The maturity…

A: The maturity value of note is calculated as sum of principal value and interest amount.

Q: on december 1st Daw company accepts a $18,000, 45-day, 10% note from a customer. 1. prepare the…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: On August 2, Jun Company recelves a $7,700, 90-day, 15.0% note from customer Ryan Albany as payment…

A: The account receivables represents the amount due from the customer. It is recorded as current…

Q: On October 1, Black Company receives a 4% interest-bearing note from Reese Company to settle a…

Q: On September 1, Purifier Company borrowed $12,000 on a 6-month, 4%, short-term note payable. How…

A: Interest will be paid on March 1 = Amount borrowed x rate of interest x no. of months / 12 months

Q: Hanna company accepts a note amounting $3,600 for 3-months @8% from Bandit company. The date of…

A: Reference:Watts, V. (2023, June 1). 3.2 Simple interest: maturity value. Pressbooks.…

Q: The Beta Company made a sale for $340,000 on credit. It accepted a note receivable from the…

A: Solution- = $340000 * 4% = 13600 Interest is calculated by applying Interest rate to the principle…

Q: A company grants a payment extension to its customer by converting that $15,000 accounts payable to…

A: Interest on 45 days note for 30 days 115000*12%*30/360=$150

Q: XYZ Company lends KLM Company $60,000 on April 1, accepting a three month, 9% interest note. XYZ…

A: Adjusting entries include all the incomes and expenses which have been earned or incurred and…

Q: On april 12 hong company agrees to accept a 60 day, 10% note from Indigo to extend the overdue…

A: Increase in liabilities should be credited and decrease in liabilities should be debited.

Q: Pickett Company received a 90 day, six percent note receivable for $20,000 on November 1. How much…

A: Note receivable amount = $20,000 Due period = 90 days Note received date = November 1

Q: Hanna company accepts a note amounting $3,600 for 3-months @ 8% from Bandit company. The date of…

A: The problem is asking us to calculate the interest payable on maturity for a note. The note has a…

Q: On October 13, The business sold merchandise for 198.000 TL (including 10% VAT) FOB Destination. The…

A: The selling of assets is recorded by debiting to notes receivable and crediting the machinery…

Q: On March 1, Felton Company borrows $90,000 from Ottawa State Bank by signing a 6-month, 8%,…

A: Working note: Computation of interest expense: Interest expense=Amount borrowed×rate of…

Q: Tangent Company borrowed $100,000 from the bank signing an 8%, 6-month note on September 1.…

A: Interest expense refers to the amount that the lender charges from the company or individual at a…

Q: On October 1, 2010, the company deposits 12.000 TL in a bank account for 1 year at 10%. Which entry…

A: Interest Revenue = Deposit amount * Rate * Period

Q: On June 5 Glover Co. issued a $60,000, 6%, 120-day note payable to Jones Co. How much will Glover…

A: Step 1: Formula Interest = Principal x interest rate x yearMaturity value = Principal + Interest…

Q: A company has a $5,000, 6%, 3-month note ceivable on its books that was issued May 1. ne amount of…

A: The note receivable is the current asset for the business. The Accrued interest is the interest that…

Q: On February 1, 2021, Miter Corp. lends cash and accepts a $1,000 note receivable that offe interest…

A: The interest revenue for the period is calculated from the date of borrowing to the date of…

Q: Royalty Inc. lends to Shakespeare LTD. $50,000 on November 16. Shakespeare LTD. signs the 10%,…

A: To calculate the accrued interest and other amounts, we'll use the formula for simple interest:…

Question

On October 1, Black Company receives a 6% interest-bearing note from Reese Company to settle a $17,000 account receivable. The note is due in six months. At December 31, Black
should record interest revenue of
Oa. $252
Оь. 5255
Oc. $262
Od. $265

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

need answer
Vikarmbhai
Royalty Inc. lends to Shakespeare LTD. $50,000 on November 16. Shakespeare LTD. signs the 10%, 90-day note. ***Remember interest accruing starts the next day.*** 1. What is the amount of accrued interest December 31? $ 2. What is the amount of interest expense February 14? $ 3. What is the maturity value paid when the note is honored? $
4. AB company receives $10,000 for a 6 month, 8% note on 11/1/20. Prepare the journal entry for the receipt. Account Debit Credit 5. Prepare the journal entry to accrue interest on the above note at 12/31/20. Account Debit Credit 6. Prepare the entry to record payment of the above note in full on it's due date of 5/1/21. Account Debit Credit 7. AB Company purchases a truck in the amount of $15,000. Additional costs include sales tax of $1500, painting of $2500, license of $150 and a 1 year auto insurance policy of $1200. Complete the journal entry for the auto purchase. Account Debit Credit
On March 1, 20x4, Popular Bank agrees to lend $100.00 to your company through a written contract for a 6-month note payable at 5% interest.a. Register the note to payb. Record interest expense
Harper Company lends Hewell Company $10,800 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the financial statements can be prepared? a. Cash 54 Interest Revenue 54 b. Interest Receivable 216 Interest Revenue 216 c. Interest Receivable 54 Interest Revenue 54 d. Note Receivable 10,800 Cash 10,800
On February 1, 2021, Miter Corp. lends cash and accepts a $1,000 note receivable that offers 12% interest and is due in six months. How much interest revenue will Miter Corp. report during 2021? Multiple Choice O O O O $120. $240. $100. $60.
6. Prepare general journal entries for the following transactions of Salvador Company. April 30 Received a $5,000, 6%, 30-day note receivable from Juan Co. as settlement for its $5,000 account receivable. May 30 The note received from Juan on April 30 was collected in full.
The opening balance of a savings account for November is $2,004.On November 9. S621 was withdrawn from the account. On November 22, 449 was withdrawn from account. t the acoount pays simple interest at 195% based en the daily cosing balance how much interest is deposited on December 17 For marks your answer should be rounded to he nearest cent Interest = S 0.00
On May 22, Jarrett Company borrows 9, 200, signing a 90-day, 7% $9, 200 noteWhat is the journal entry made by Jarrett Company to record the payment of the note on the maturity date? Choice Notes Payable $9,200, credit interest Expense $161 credit Cash $9,039 Notes Payable 9.200 credit Cash $9.200 Debit Notes Payable $9,361, credit Cash $9.361
Bramble Corp. lends Sheffield Corp. $50400 on April 1, accepting a four-month, 9% interest note. Bramble Corp. prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared? O Interest Receivable 378 Interest Revenue 378 Interest Revenue 80 Cash Note Receivable Cash Interest Receivable Interest Revenue Type here to search 378 50400 1134 S 378 50400 1134 17
On November 7, Mura Company borrows $160,000 cash by signing a 90-day, 8%, $160,000 note payable. 1. Compute the accrued interest payable on December 31. 2. & 3. Prepare the journal entry to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Compute the accrued interest payable on December 31. (Use 360 days a year. Do not round your intermediate calculations.) Principal x Rate (%) x Time = Interest Total through maturity % Year end interest accrual % Interest recognized February 5. %