Other data: Insurance expires at the rate of $360 per month 2. A count of supplies shows $1.150 of unused supplies on May 31. 3. Annual depreciation is $3,600 on the building and $3,000 on equipment. The notes payable interest rate is 5%. (The note was taken out on May 1 and has a 1-year life. Interest and principal are to be repaid at the maturity of the note) Unearned rent of $2,630 has been earned. Salaries of $750 are accrued and unpaid at May 31 1. 4 5. 6 (a) Journalize the adjusting entries on May 31. (List all debit entries before credit entries. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the

Other data: Insurance expires at the rate of $360 per month 2. A count of supplies shows $1.150 of unused supplies on May 31. 3. Annual depreciation is $3,600 on the building and $3,000 on equipment. The notes payable interest rate is 5%. (The note was taken out on May 1 and has a 1-year life. Interest and principal are to be repaid at the maturity of the note) Unearned rent of $2,630 has been earned. Salaries of $750 are accrued and unpaid at May 31 1. 4 5. 6 (a) Journalize the adjusting entries on May 31. (List all debit entries before credit entries. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...

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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?
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?
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
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.
On January 1, Year 1, Bryson Company obtained a $12,000, four-year, 9% installment note from Campbell Bank. The note requires annual payments of $3,704, beginning on December 31, Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Note: Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers. In Year 4, round the amount in the Decrease in Notes Payable column either up or down to ensure that the Carrying Amount zeroes out. Amortization of Installment Notes Year EndingDecember 31 January 1Carrying Amount Note Payment(Cash Paid) Interest Expense(9% of January 1Note CarryingAmount) Decrease inNotes Payable December 31Carrying Amount Year 1 $ $ $ $ $ Year 2 Year 3 Year 4 0 $ $ $
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