PB8-3 (Algo) Recording Notes Receivable Transactions [LO 8-3] Stinson Company recently agreed to loan an employee $200,000 for the purchase of a new house. The loan was executed on May 31, 2021, and is a one-year, 6 percent note, with interest payments required on November 30, 2021, and May 31, 2022. Stinson issues quarterly financial statements on March 31, June 30, September 30, and December 31. Required: Prepare journal entries to record the below transactions for Stinson Company. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) 1. When the note is established. 2. To record the interest accruals at each quarter-end and interest payments at each payment date. 3. To record the principal payment at the maturity date.

PB8-3 (Algo) Recording Notes Receivable Transactions [LO 8-3] Stinson Company recently agreed to loan an employee $200,000 for the purchase of a new house. The loan was executed on May 31, 2021, and is a one-year, 6 percent note, with interest payments required on November 30, 2021, and May 31, 2022. Stinson issues quarterly financial statements on March 31, June 30, September 30, and December 31. Required: Prepare journal entries to record the below transactions for Stinson Company. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) 1. When the note is established. 2. To record the interest accruals at each quarter-end and interest payments at each payment date. 3. To record the principal payment at the maturity date.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question. Jamaica Corporation carried out the following transactions involving note payable. During the fiscal year ended December 31, 2020. Aug 6 Borrowed $ 15,200 from Tony Stark, issuing to him a 45 da, 14% note payable. Sept. 16 Purchased office equipment from Ikea Company. The invoice amount was $18,800 and Ikea Company agreed to accept as full payment a 3-month, 15% note for the invoice amount. Sept. 20 Paid Tony Stark note plus accrued interest. Nov.1 Borrowed $ 2,35,000 from Nation Commercial Bank at an interest rate of 12% per annum; signed a 90-days note payable for $ 2,42,256, which included a $7,056 interest charge in the face amount. Dec.1 Purchased merchandise in the amount of $13,000 from Stephens & Co. Gave in settlement a 60-day note nearing interest at 15% (Perpetual inventory system is deployed). Dec. 16 The $18,800 note payable to Ikea Company matured today. Paid the interest accrued and issued new 30-days, 12% note to replace the maturing…
E4-29 Mattson Loan Company completed these transactions: 2019 Apr. Dec. 2020 Apr. 1 Loaned $20,000 to Charlene Baker on a one-year, 5% note. 31 Accrued interest revenue on the Baker note. 1 Collected the maturity value of the note from Baker (principal plus interest). Show what Mattson would report for these transactions on its 2019 and 2020 balance sheets and income statements. Mattson's accounting year ends on December 31.
On January 1, 2021, Nantucket Ferry borrowed $14,600,000 cash from BankOne and issued a four-year, $14,600,000, 8% note. Interest was payable annually on December 31. Prepare the journal entries for both firms to record interest at December 31, 2021.
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