On September 1, Year 1, Able Company purchased a building from Regal Corporation by paying $ 380,000 cash and issuing a one- year note payable for the balance of the purchase price. Interest on the note is stated at an annual rate of 12% and is paid at maturity. In its December 31, Year 1, balance sheet, Able correctly presented the note and interest payable as follows: Interest payable $15, 200 Notes payable, 12%, due September 1, Year 2 $380,000 What is the amount of the interest expense Able will recognize on this note in Year 2? Multiple Choice $15,200 $26, 600 $ 30,400 $45,600

Q: Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts…

A: A note payable is a written arrangement between the two individuals in which one promises to pay the…

Q: On January 1, Year 1, Mahoney Company borrowed $165,000 cash from Sun Bank by issuing a 5-year, 8%…

A: Loan means the amount taken from another person to be repaid back with interest. Equal annual…

Q: On August 1, Batson Company issued a 60-day note with a face amount of $140,000 to Jergens Company…

A: Notes in accounting, also known as promissory notes, are written promises to pay a specific amount…

Q: Inc. issued ar а Cerest revenu

A: Answer : Interest revenue recognized in the following year = $89,300 * 8% * 91/360 Interest revenue…

Q: On June 8, Alton Co. issued an $77,100, 7%, 120-day note payable to Seller Co. Assume that the…

A: Interest:   An interest is the cost of the funds loaned to the business by any lender.

Q: Preparing Entries and Interest Schedule for Long-Term Note Receivable; Effective Interest Method On…

A: Req : a       Computation of Present Value of Notes receivable:       Table Value are Based on:…

Q: On January 1, Year 1, Bryson Company obtained a $36,000, four-year, 8% installment note from…

A: There is error in question, 7% interest expense is written which is incorrect. Correct word is 8% of…

Q: On January 1, Year 1, Beatie Company borrowed $400,000 cash from Central Bank by issuing a…

A: Amortization schedule of interest and principal payment for 5 periods is as under:

Q: 1-Jan Janus Corp. lent $66, 116 to Jeeter Company, accepting Jeeter's 2 year, $80,000 Date Account…

A: Interest bearing notes:These notes have a stated rate of interest that is payable in addition to the…

Q: On January 1, 20x1, SCRUPULOUS EXACT Co., acquired a piece of equipment by issuing a P 12,000,000,…

A: Calculating the carrying amount as on January 1, 20X3:Total Amount= $12,000,000Installment Amount=No…

Q: On January 1, Gemstone Company obtained a $165,000, 7%, 10-year installment note from Guarantee…

A: Notes payable refer to a written agreement between two parties. Under this agreement, the lender…

Q: The following selected transactions were taken from the books of Ripley Company for Year 1: 1. On…

A: As per dual concept of accounting, every transaction has dual impact on the books of accounts.The…

Q: NYJ, Inc. borrowed $500,000 on November 1, 20X1, and signed a nine-month note bearing interest at…

A: The notes payable require the borrower company to pay interest expense. The interest expense is…

Q: On January 1, Year 1, Luzak Company issued a $47,000, 4-year, 9% installment note to McGee Bank. The…

A: Journal Entry: It is the first and foremost procedure in an accounting cycle. The transactions are…

Q: On January 1, Year 1, Mahoney Company borrowed $172,000 cash from Sun Bank by issuing a 5-year, 8%…

A: Please see the answer below ? Notes Payable: Long-term debt instruments issued by businesses as…

Q: On August 1, Batson Company issued a 60-day note with a face amount of $96,000 to Jergens Company…

A: Proceeds of the note (when note is discounted) = Face value of the Note - Discount amount where,…

Q: The principal and interest are to be paid by making annual payments in the amount of $62,363.…

A: Borrowed amount = $270,000 Time = 5 years Interest paid = annually  Rate of interest = 5% Cash paid…

Q: On June 1, Davis Inc. issued an $81,200, 8%, 120-day note payable to Garcia Company Assume that the…

A: Interest revenue = face value of not x rate of interest x No. of days / 360 days

Q: Prefix Supply Company received a 60-day, 4% note for $46,000 dated July 12 from a customer on…

A: Journal: Recording of a business transaction in a chronological order.

Q: Madison Company issued an interest-bearing note payable with a face value of $24,000 and a stated…

A: Note payable refers to the amount for which the individual or the company has written to pay the…

Q: On January 1, Year 1, Beatie Company borrowed $360,000 cash from Central Bank by issuing a…

A: Amortization schedule is the one which is prepared by the entity for the purpose of determining the…

Q: Madison Company issued an interest-bearing note payable with a face value of $9,600 and a stated…

A: Total liabilities are the sum of a person's or company's debts. They fall into three broad…

Q: 1) On October 1, 20x1, Metro Bank loaned $8,000,000 and received a 5-month promissory note with 10%…

A: Note is kind of instrument which are commonly used by the lender and borrower at the time of giving…

Q: Martinez Co. borrowed $74,240 on March 1 of the current year by signing a 60-day, 12%,…

A: Given, Face value of the note = $74,240 Interest rate = 12% Period = 60 days

Q: c. How will the annual note payment be reported in the Year 1 income statement? of $ would be…

A: Interest expenses of $5720 will be in Income Statement in Year 1.

Q: On August 1, Batson Company issued a 60-day note with a face amount of $85,200 to Jergens Company…

A:

Q: Zion Architects & Engineers issued on account 120-day, 8% note for $60,000, dated June 13 to…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On January 1, Yeargan Company obtained a $125,000, seven-year 5% installment note from Farmers Bank.…

A: Note​ payable: Note​ payable is an instrument through which borrower obtains money from a person…

Q: Havier Corporation borrows $1 million from a bank on September 1, Year 1, by signing a 6 percent,…

A: The journal entry for the above is Note payable A/C dr.     $10,00,000 Interest expense A/c dr.…

Q: Justin Company signed a $90,000, three-month, 9% note payable, on December 1. If the accounting…

A: Interest accrued on December 31= Face value of bonds x rate of interest x no. of month/12 = $90000 x…

Q: Amenadiel Co. has an 8% note receivable dated June 30, year 1, in the original amount of 150,000.…

A: A written promise to receive a sum of money at the pre determined future date is referred to as note…

Q: On the first day of the fiscal year, Shiller Company borrowed $22,000 by giving a five-year, 12%…

A: Notes payable: Notes payable can be defined as an instrument where a borrower promises to repay the…

Q: On January 1, Year 1, Beatie Company borrowed $240,000 cash from Central Bank by issuing a…

A: Lets understand the basics. When entity borrows fund by issuing notes payable then management needs…

Q: On January 1, the first day of the fiscal year, Shiller Company borrowed $120,000 by giving a…

A: Notes payable represent a promissory note issued by the borrower to repay the principal amount…

Q: How do I find the carrying amout for each year?

A: Requirement a:   Prepare an amortization table.

Q: )Determine the due date of the note. b)Determine the maturity value of the note. Assume 360 days in…

A: Given information is: Lundquist Company received a 60-day, 9% note for $21,500, dated July 23, from…

Q: Dan Dayle started a business by issuing an $85,000 face value note to First State Bank on January 1,…

A: >Note Payables are the liabilities.>It can be issued in case of:--when goods are purchased on…

Q: b. Determine the proceeds of the note assuming th

A: Merchandise inventory refers to products purchased from suppliers by a distributor, wholesaler, or…

Q: On August 1, Batson Company issued a 60-day note with a face amount of $62,400 to Jergens Company…

A: a Proceeds of the notes=face value = $62400 (Answer)Explanation:Proceeds from notes payable means…

Q: Dan Dayle started a business by issuing an $98,000 face value note to First State Bank on January 1,…

A: a)  Interest Expense = Principal Amount x Interest Rate = $98,000 x 8% = $7,840a)  Principal…

Q: On January 1, Year 1, Platte Corporation issues a 5-year note payable for $5,000. The interest rate…

A: Note payable is a negotiable instrument issued by the payer to the payee to pay certain amount of…

Q: On the first day of the fiscal year, Shiller Company borrowed $33,000 by giving a seven-year, 8%…

A: Journal entry

Q: On August 1, Batson Company issued a 60-day note with a face amount of $80,400 to Jergens Company…

A: Merchandise inventory refers to products purchased from suppliers by a distributor, wholesaler, or…

Q: Valley Designs issued a 120-day, 6% note for $60,000 dated April 10 to Bork Furniture Company on…

A: Due date of note :A note or promissory note is a written promise agreement where one promises to pay…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.