QUESTION 4On September 1, Sky Mountain Company borrowed $58,000 on a 6%, 9-month note payable to Coast National Bank Given no previous adjusting enth have berecorded, Sky Mountain's adjusting entry four months later at December 31 would include aO debit to Interest Expense of $870.O debit to Interest Expense of $1,160.debit to Interest Expense of $3,480.O debit to Interest Expense of $2,610.Onone of the above

The adjustment entries are prepared at year-end to adjust the revenue and expenses of the current…

Answered: QUESTION 4 On September 1, Sky Mountain…

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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On August 1, Year 1, Bellisa Company issued a $36,000 7%, 5-year note to Citizens Bank. Which of the following entries reflects the adjustment required as of December 31, Year 1? Multiple Choice Interest Payable Interest Expense Interest Expense Notes Payable Interest Expense Interest Payable Interest Expense Interest Payable 2,520 1,050 2,520 1,050 2,520 1,050 2,520 1,050
EX.06.144 On April 7, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, the company sold the note to a bank at a 13% discount rate. Required:Compute the amount of interest revenue and the loss on sale of the note. Assume a 360-day year. Round your answers to two decimal places. Interest revenue $ Loss on sale of note $
On October 1, Black Company receives a 10% interest-bearing note from Reese Company to settle a $17,800 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a.$455 b.$442 c.$445 d.$452
Issuing Notes Payable On September 30, Bello International borrows $320,000 from Chase Bank with a 9-month, 8% note. Required: Hide What journal entry is made at Bello's year-end, December 31? Dec. 31 (Record accrued interest expense)
Entries for Discounted Note PayableA business issued a 90-day note for $36,000 to a creditor on account. The note was discounted at 9%. Assume a 360-day year.a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank. If necessary, round to one decimal place.a. Accounts Payable Notes Payable Interest Expense b. Journalize the entry to record the payment of the note at maturity.
Adjusting Entries for InterestThe following note transactions occurred during the year for Towne Company: Nov. 25 Towne issued a 90-day, nine percent note payable for $8,000 to Hyatt Company for merchandise. Dec. 7 Towne signed a 120-day, $30,000 note at the bank at ten percent. Dec . 22 Towne gave Barr, Inc., a $12,000, four percent, 60-day note in payment of account. Prepare the general journal entries necessary to adjust the interest accounts at December 31.Use 360 days for calculations and round to the nearest dollar. General Journal Date Description Debit Credit Dec.31 To accrue interest expense for note issued on Nov. 25. Dec.31 To accrue interest expense for note signed on Dec. 7. Dec.31 To accrue interest expense for note on Dec. 22.
S On November 1, Bahama National Bank lends $3.9 million and accepts a six-month, 9% note receivable. Interest is due at maturity. Record the acceptance of the note and the appropriate adjustment for interest revenue at December 31, the end of the reporting period. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).) View transaction list Journal entry worksheet 1 2 Record the acceptance of the note. Note: Enter debits before credits. Date November 01 Record entry General Journal Clear entry Debit Crec View gener
Gray Inc. lends White Ltd. $60,000 on April 1, accepting a 6-month, 4.5% interest note. Interest is due the first of each month, commencing May 1. Gray Inc. has an April 30 year-end. What adjusting entry should be made before the financial statements can be prepared? Cash 225 Interest Revenue. 225 Note Receivable. Cash. 60,000 60,000 Interest Receivable. Interest Revenue. 1,350 1350 Interest Receivable.. Interest Revenue. 225 225
Entries for Notes Payable A business issued a 45-day, 6% note for $235,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year. Round your final answers to the nearest dollar. If an amount box does not require an entry, leave it blank. a. b.
Question 2 Morton Company had the following select transactions. Apr. 1, 2020 Accepted Remington Company's 1-year, 12% note in settlement of a $25,000 account receivable. July 1, 2020 Loaned $15,000 cash to Jenny Green on a 9-month, 10% note. Dec. 31, 2020 Accrued interest on all notes receivable. Apr. 1, 2021 Received principal plus interest on the Remington note. Apr. 1, 2021 Jenny Green dishonored its note: Morton does not expect collection Instructions Prepare journal entries to record the transactions. Morton prepares adjusting entries once a year on December 31.
Entries for Installment Note Transactions On January 1 of Year 1, Bryson Company obtained a $26,000, four-year, 12% installment note from Campbell Bank. The note requires annual payments of $8,560, beginning on December 31 of Year 1. a. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Round the computation of the interest expense to the nearest whole dollar. Enter all amounts as positive numbers.b. Journalize the entries for the issuance of the note and the four annual note payments. If an amount box does not require an entry, leave it blank.c. How will the annual note payment be reported in the Year 1 income statement?
Proceeds from Notes Payable On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of $225,000. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 8%.$fill in the blank 1 b. Determine the proceeds of the note, assuming the note is discounted at 8%.

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