shows an Interest Expense balance of $500 On August 31, 2020, the company borrowed $5,000 with an annual interest rate of 6% for 15-month. The adjusted balance of "Interest Expense" is:
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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.)XYZ Company lent $9,000 at 10% interest on December 1, 2019. The amount plus all interests accrued will be collected after 1 year. At the end of December, which of the following journal entry is required to take up the interest income? Select one: a. Debit Cash $900; Credit Interest Revenue $900 b. Debit Interest Revenue $75; Credit Interest Receivable $75 c. Debit Interest Receivable $900; Credit Unearned Revenue $900 d. Debit Interest Receivable $75; Credit Interest Revenue $75On 31 May, 2020, the business borrowed $30,000 on a four year, 5% per annum loan that calls for annual payments of interest every 31st May. Assume the balance day falls on 31 December 2020, the correct journal entry to record the accrued interest on the balance day in 2020 is: (hint: calculate by counting months, not days) Select one: а. Dr Interest expense 750 Cr Interest payable 750 O b. Dr Interest expense 1,500 Cr Interest payable 1,500 С. Dr Cash 30,000 Cr Loan payable 30,000 d. Dr Interest expense 875 Cr Interest payable 875
- Pam Company borrowed $75,000 on June 1, 2020, by issuing an 11-month, 8% interest-bearing note. The company prepares its financial statement annually at the end of December. Maturity date is: * April 1, 2020 OApril 30, 2020 May 1, 2020 May 30, 2020 None of the above The adiuctingOn June 30, 2020, Amoro Company takes out a $5,000 loan documented through a note payable. Interest will be 16% annually and the note matures on June 30, 2021. The interest to be accrued at December 31, 2020 will be: о $400 0 $800 0 $0 0 $467Damoah's Pizza Co. borrowed $200,000 on January 1, 2020, and signed a two-year note bearing interest at 12%. Interest is payable in full at maturity on January 1, 2022. In connection with this note, Damoah's should report interest expense at December 31, 2020, in the amount of: Question 23 options: $0 $24,000 $48,000 $50,880
- DOR Company borrowed $10,000 on October 1, 2018 and signed a 2 years note with a 6% annual interest rate. The company prepares its financial statement yearly at December 31. The adjusting entry at the end of the year 2019 will include a: * O Debit of Interest Expense $75 O Debit of Interest Expense $150 O Credit Interest Payable $600 O None of the optionsOn November 1, 2018, A-1 Products borrowed $64,000 on a 5%, 5-year note with annual installment payments of $12,800 plus interest due on November 1 of each succeeding year. On November 1, 2020, what is the balance of the Long-Term Notes Payable account? (Round your answer to nearest whole number.) OA. $38,400 OB. $64,000 OC. $12,800 O D. $51,200Sayed Company borrowed $40,000 on August 31, 2020, by issuing an 9-month, 9% interest-bearing note. The company prepares its financial statement annually at the end of December. Maturity date is: April 1, 2020 May 1, 2020 June 1, 2020 July 1, 2020 None of the above The adjusting entry to record the accrued interest on December 31, 2020 is: * Debit Interest Expense and Credit Interest Payable for $1,200 Debit Interest Expense and Credit Interest Payable for $1,500 Debit Interest Expense and Credit Cash for $3,600 Debit Interest Expense and Credit Interest Payable for $2,700 None of the above O O
- Showtime, Inc. borrows $160,000 by issuing an 8%, 5-year note on January 1, 2020. Showcase must make payments of principal and interest every 3 months, beginning December 31, 2024. The note will be fully paid at maturity on Decembet 31, 2024. The company's fiscal year ends on December 31. Prepare the journal entries at January 1, 2020, and March 31, 2020. Prepare the Journal Entry on March 31, 2020 1/1/20 Cash 160,000 Long Term Note Payable 160,000 3/1/20 Interest Expense ?? Long Term Note Payable ?? Cash ??Teal Mountain Industries borrows $23200 at 9% annual interest for six months on October 1, 2025. Which is the appropriate entry to accrue interest if Teal Mountain has a December 31, 2025, year-end? Interest Expense Interest Payable Interest Expense Notes Payable Interest Expense Notes Payable Interest Expense Interest Payable 2088 2088 522 522 2088 2088 522 522Blue Inc. has a year-end of June 30. On December 1, 2020, the company signed a 10-month, 5% note receivable for $28,000. The adjusting entry required at year-end is: Question 14 options: DR Interest receivable $1,400 CR Interest income $1,400 DR Interest income $1,167 CR Interest receivable $1,167 DR Interest receivable $817 CR Interest income $817 DR Interest income $117 CR Interest receivable $117