Question in image, thanks! Sheridan Corporation issued a one-year, 8%, $534000 note on April 30, 2022. Interest expense for the year ended December 31, 2022was$42720.$24920.$28480.$32040.

To calculate the interest expense for the year ended December 31, 2022, we need to consider that the…

Answered: Sheridan Corporation issued a one-year,…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
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?
Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
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, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000
On August 15, 2022, Pharoah Company signs a $248000, 7%, twelve-month note payable. Which of the following entries correctly records the accrued interest on December 31, 2022? Dr Interest Expense $5786.67 Cr Interest Payable $5786.67 Dr Interest Expense $10850.00 Cr Interest Payable $10850.00 Dr Interest Expense $17360.00 Cr Interest Payable $17360.00 Dr Interest Expense $6510.00 Cr Interest Payable $6510.00
Ans
On January 1, 2020, Sheridan Company, a calendar-year company, issued S608000 of notes payable, of which $152000 is due on January 1 for each of the next four years. Ignoring interest the proper balance sheet presentation on December 31, 2020, is O Current Liabilities, $152000; Long-term Debt, $456000. O Long-term Debt, $608000. O Current Liabilities, $608000. O Current Liabilities, $456000: Long-term Debt, $152000.
On January 1, 2020, Sunland Company, a calendar-year company, issued $897000 of notes payable, of which $224250 is due on January 1 for each of the next four years. Ignoring interest, the proper balance sheet presentation on December 31, 2020, is O Current Liabilities, $448500; Long-term Debt, $448500. O Long-term Debt, $897000. O Current Liabilities, $224250; Long-term Debt, S672750. O Current Liabilities, $897000.
On December 1, 2024, Modern Dining Products borrowed $97,000 on a 6%, 10-year note with annual installment payments of $9,700 plus interest due on December 1 of each succeeding year On December 1, the principal amount was recorded as a long-term note payable What amount of the note payable will be shown as current portion of Long-Term Note Payable on the balance sheet as of December 31, 2024? (Round your answer to nearest whole number) OA. $19,400 OB. $15,520 OC. $9,700 OD. $5,820
BE11-2 Peralta Company borrows $60,000 on July 1 from the bank by signing a $60,000, 10%, one-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (b) Prepare the journal entry to record accrued interest at December 31, assuming adjust- ing entries are made only at the end of the year.
On July 8, Action Co. issued an $80,000, 6%, 90-day note payable to Scanlon Co. Assuming a 360-day year, what is the maturity value of the note? a.$84,800 b.$78,800 c.$80,000 d.$81,200

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Sheridan Corporation issued a one-year, 8%, $534000 note on April 30, 2022. Interest expense for the year ended December 31, 2022 was $42720. $24920. $28480. $32040.