Stellar Industries' liability account balances at March 31, 2024 included an 8% note payable. The note is dated July 1, 2022, and carried an original principal amount of $900,000. The note is payable in three equal annual payments of $300,000 plus interest. The first interest and principal payment was made on July 1, 2023. In Stellar's March 31, 2024 balance sheet, what amount should be reported as Interest Payable for this note? a) $12,000 b) $18,000 c) $36,000 d) $48,000

Stellar Industries' liability account balances at March 31, 2024 included an 8% note payable. The note is dated July 1, 2022, and carried an original principal amount of $900,000. The note is payable in three equal annual payments of $300,000 plus interest. The first interest and principal payment was made on July 1, 2023. In Stellar's March 31, 2024 balance sheet, what amount should be reported as Interest Payable for this note? a) $12,000 b) $18,000 c) $36,000 d) $48,000

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%...

See similar textbooks

Similar questions

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.)
On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.
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?
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 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.
Blaze Corporation's liability account balances at August 31, 2023, included an 8% note payable. The note is dated November 1, 2021, and carried an original principal amount of $750,000. The note is payable in three equal annual payments of $250,000 plus interest. The first interest and principal payment was made on November 1, 2022. In Blaze Corporation's August 31, 2023, balance sheet, what amount should be reported as Interest Payable for this note? (Round your answer to nearest number if needed) A) $12,500 B) $25,000 C) $33,333 D) $40,000
What amount should be reported as interest payable for this note on these financial accounting question?
What amount should be reported as interest payable?
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 January 2, 2023, Eagle Corp. borrowed $25,000 from Bank Three. The loan was to be repaid in equal principal installments of $5,000, payable on December 31 of each year. beginning on December 31, 2023. Disregarding interest, the amount of the $25,000 loan that should be considered a long-term liability on the company's balance sheet for the year ended December 31, 2024 would be:
On January 2, 2018, Keystone Company borrowed $60,000 from Bank Three. The loan was to be repaid in equal principal installments of $10,000, payable on December 31 of each year, beginning on December 31, 2018. Disregarding interest, the amount of the $60,000 loan that should be considered a long-term liability on the company's balance sheet for the year ended December 31, 2019 would be: O $30,000 Ⓒ $40,000 O $50,000 O $20,000 O None of the above.
On July 1, 2020, Thomas Company, which follows calendar year accounting, issued $240.000 note to be repaid over four years in monthly installments of $5,000. What would be the proper balance sheet presentation of this transaction at December 31, year 2020. Show it: The Current Portion of the Long-Term Debt and the Long-Term Debt.