On October 1, Coastal Shipping Ltd. issues a $180,000, ten-month, 4.5% note. Interest is payable at maturity. What is the amount of interest expense that the company would record in a year-end adjustment on December 31?

On October 1, Coastal Shipping Ltd. issues a $180,000, ten-month, 4.5% note. Interest is payable at maturity. What is the amount of interest expense that the company would record in a year-end adjustment on December 31?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...

See similar textbooks

Related questions

Q: The amount of actual overhead would have been_.

A: Concept of Manufacturing Overhead:Manufacturing overhead refers to all indirect costs associated…

Q: I need help with this problem and accounting question

A: Step 1: Definition of Predetermined Overhead Rate & Over/Under-Applied OverheadThe predetermined…

Q: No AI

A: To calculate the Operating Cash Flow (OCF), we use the following formula: 1. Calculate EBIT…

Q: Calculate the COGS

A: Step 1: DefinitionsConcept of Cost of Goods Sold (COGS):Cost of Goods Sold (COGS) refers to the…

Q: Kindly help me with this General accounting questions not use chart gpt please fast given solution

A: Step 1: Detailed Explanation of Beginning InventoryBeginning inventory refers to the value of…

Q: Subject = General Account

A: Step 1: Definition of Capital GainA capital gain is the profit that results from the sale of a…

Q: answer this with correct steps

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) is the total direct cost…

Q: General accounting

A: Step 1: Definition of Weighted-Average Process CostingThe weighted-average method of process costing…

Q: Quick answer of this accounting

A: Step 1: Detailed Explanation of Sales Units to Realize Operating IncomeTo determine the number of…

Q: The financial statements of the Patterson Industries reported net sales of $875,000 and accounts…

A: Explanation of Receivables Turnover Ratio: The receivables turnover ratio measures how efficiently a…

Q: None

A: The formula for the annual rate of return, based on the initial investment, is:Annual Rate of…

Q: Kindly help me with this General accounting questions not use chart gpt please fast given solution

A: Step 1: Detailed Explanation of Venture Capital Investment OwnershipA venture capital investment…

Q: Can you help me solve this general accounting problem using the correct accounting process?

A: Step 1: Detailed Explanation of Beginning Cash BalanceBeginning Cash Balance refers to the amount of…

Q: Need correct answer please general accounting

A: Step 1: Definition of Capital RaisedCapital raised refers to the total amount of money a government,…

Q: need help this accounting question

A: Step 1: Definition of Realized GainA realized gain is the increase in value that occurs when an…

Q: Please explain the solution to this general accounting problem with accurate explanations.

A: Step 1: Detailed explanation of Cash Used in Operating ActivitiesCash used in operating activities…

Q: Quine Inc. reported sales of $8,500,000 for the month and incurred variable expenses totaling…

A: Concept of Contribution Margin per Unit:The contribution margin per unit is the amount each unit…

Q: I am searching for the correct answer to this general accounting problem with proper accounting…

A: Step 1: Definition of Property, Plant, and Equipment (PPE)Property, Plant, and Equipment (PPE) are…

Q: I am searching for the correct answer to this general accounting problem with proper accounting…

A: Step 1: Detailed explanation of (Net Sales, Gross Profit, Net Income)Net Sales represent the revenue…

Q: What is the amount of current assets?

A: Step 1: Definitions Concept of Current Assets:Current assets are short-term assets that a company…

Q: The process of transferring general journal entry information to the ledger is called: a. Balancing…

A: Concept of Posting:Posting is the process of transferring financial information from the general…

Q: Financial accounting

A: Step 1: Definition of Relevant CostRelevant cost refers to any cost that will be directly affected…

Q: ?

A: Concept of Variable Costing:Variable costing is a costing method where only variable production…

Q: I need the correct answer to this general accounting problem using the standard accounting approach.

A: Step 1: Definitions Concept of Cash Budgeting:Cash budgeting is the process of estimating a…

Q: What amount of raw material was transferred to work in process inventory ?

A: Provided Data:Beginning Raw Materials Inventory = $34,000Raw Materials Purchased = $123,000Ending…

Q: Can you solve this general accounting question with accurate accounting calculations?

A: The Sustainable Growth Rate tells us how fast a company can grow its sales, profits, and dividends…

Q: General accounting question is correct

A: Step 1: Detailed Explanation of Break-Even Sales and Contribution MarginThe Break-Even Point is the…

Q: Provide accounting answer

A: Step 1: Definition of Cash BalanceCash balance refers to the amount of cash a business has on hand…

Q: What is the net sales revenue for element supplies?

A: Step 1: Definitions Concept of Net Sales Revenue:Net sales revenue is the amount of sales a company…

Q: cost accounting

A: Formula:Stock Price = (P/S Ratio) × (Sales per Share)Given:Total Sales = $1,000,000Shares…

Q: Please provide the answer to this general accounting question using the right approach.

A: Step 1: Detailed Explanation of High-Low MethodThe High-Low Method is a technique used to estimate…

Q: Please provide the solution to this general accounting question using proper accounting principles.

A: Step 1: Definition of Allowance for Sales ReturnsThe Allowance for Sales Returns is a contra-revenue…

Q: Can you solve this financial accounting question with the appropriate financial analysis techniques?

A: Step 1: Definition of Acid-Test RatioThe acid-test ratio, also known as the quick ratio, is a…

Q: step by step answer

A: Concept of Absorption Costing:Absorption costing is a method of inventory valuation in which all…

Q: What is the cost of goods manufactured for the year?

A: Step 1: DefinitionsConcept of Cost of Goods Manufactured (COGM):Cost of Goods Manufactured refers to…

Q: Duo Company has a deferred tax liability at the end of Year 1 of $120 as a result of a temporary…

A: Step 1: Definition of Deferred Tax LiabilityA Deferred Tax Liability (DTL) arises when a company's…

Q: Help

A: Explanation of Fixed Asset Turnover Ratio: Fixed asset turnover ratio is a financial efficiency…

Q: Dell Industries has a normal capacity of 30,000 direct labor hours. The company's variable costs are…

A: Step 1: Definition Concept of Standard Manufacturing Overhead Rate:The standard manufacturing…

Q: Hello tutor please given General accounting question answer do fast and properly explain all answer

A: Step 1: Detailed Explanation of Stockholders' EquityStockholders' Equity represents the residual…

Q: During July, the production department of PrimeTech Manufacturing completed a number of units of a…

A: Explanation of Production Department: The production department is the area of a manufacturing…

Q: Provide Answer

A: Provided Data:Inventory on March 1 = $420,000Raw materials purchased in March = $790,000Raw…

Q: Jackson and Ashley Turner (both 45 years old) are married and want to contribute to a Roth IRA for…

A: First, check if their income falls within the Roth IRA contribution limits.For married couples…

Q: Overhead rate for the denominator level of activity of 5200 machine hours?

A: Explanation of Variable Manufacturing Overhead:Variable manufacturing overhead includes costs that…

Q: Please explain this financial accounting problem with accurate financial standards.

A: Step 1: Definitions Concept of Gross Margin:Gross margin is the difference between a company's sales…

Q: How much were LCS's liabilities

A: Concept of Assets:Assets are resources owned by a business that are expected to provide future…

Q: Bentley Enterprises estimated manufacturing overhead for the year at $420,000. Manufacturing…

A: Step 1: Definitions Concept of Manufacturing Overhead:Manufacturing overhead refers to all the…

Q: General accounting question

A: Step 1: Definition of Accrued Interest on BondsAccrued interest is the interest that has accumulated…

Q: can you please give me accounting question

A: Step 1: Definition of Market Value and P/E RatioMarket value of a firm refers to the present value…

Q: General accounting questions

A: Step 1: Definition of True Cash BalanceTrue Cash Balance is the actual amount of cash a company has…

Q: What was cost of goods manufactured for the period?

A: Explanation of Finished Goods Inventory, Beginning: Beginning finished goods inventory represents…

Question

I need help with this general accounting problem using proper accounting guidelines.

On October 1, Coastal Shipping Ltd. issues a $180,000, ten-month, 4.5%
note. Interest is payable at maturity. What is the amount of interest expense
that the company would record in a year-end adjustment on December 31?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
On July 1, Alaskan Adventures issues a $160,000, eight-month, 6% note. Interest is payable at maturity. What is the amount of interest expense that the company would record in a year-end adjustment on December 31?
On May 31, Baker Co. issued an $35,679, 8%, 120-day note payable to Samunck Co. Assume Baker's fiscal year ends on June 30. Assume a 360- day year for your calculations. a) What is the interest EXPENSE recognized by Baker in the current fiscal year? b) What is the maturity value of the note? c) What is the maturity date of the note?
On June 1, Davis Inc. issued an $81,200, 8%, 120-day note payable to Garcia Company Assume that the fiscal year of Garcia ends June 30. Using a 360-day year in your calculations, what is the amount of interest revenue recognized by Garcia in the following year? When required, round your answer to the nearest dollar.
ABC Company received a ten-month, $18,000, 4% note from XYZ Corporation on April 1, 2020 to replace an accounts receivable. Assuming all necessary adjusting entries were made at year end, December 31, 2020, the entry ABC makes on the maturity date would include a: credit to interest receivable for $540. credit to note receivable for $18,600 credit to interest revenue for $600 A. В. С. D. debit to interest revenue for $60 Е. credit to interest revenue for $720
Justin Company signed a $90,000, three-month, 9% note payable, on December 1. If the accounting period ends on December 31, the entry made at the time of the note's maturity will include: Select one: a. An increase to Interest Expense for $2,025 b. An increase to Interest Expense for $675 c. A decrease to Interest Payable for $1,350 d. An increase to Interest Expense for $1,350
On September 1, Kennedy Company loaned $112,000, at 9% annual interest, to a customer. Interest and principal will be collected when the loan matures one year from the issue date. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end?
On April 12, Hong Company agrees to accept a 60-day, 8%, $7,800 note from Indigo Company to extend the due date on an overdue account. What is the journal entry that Indigo Company would make when it records payment of the note on the maturity date? (Use 360 days a year.)
On November 1, Bahama Cruise Lines borrows $4 million and issues a six-month, 6% note payable. Interest is payable at maturity. Record the issuance of the note and the appropriate adjustment for interest expense at December 31, the end of the reporting period.