Sweet, Inc. issued a $120,000, 4-year, 8% note at face value to Flint Hills Bank on January 1, 2025, and received $120,000 cash. The note requires annual interest payments each December 31. Prepare Sweet's journal entries to record (a) the issuance of the note and (b) the December 31 interest payment. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Date (a) (b) Account Titles and Explanation Debit Credit

Sweet, Inc. issued a $120,000, 4-year, 8% note at face value to Flint Hills Bank on January 1, 2025, and received $120,000 cash. The note requires annual interest payments each December 31. Prepare Sweet's journal entries to record (a) the issuance of the note and (b) the December 31 interest payment. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Date (a) (b) Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1, 2018, Bank's Hardware issues a note with a principal amount of $510,000, 12% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Bank’s Hardware Store for the following transactions. If an amount box does not require an entry, leave it blank. A. Note issuance. B. Subsequent interest entry on December 31, 2018. C. Honored note entry at maturity on December 31, 2019. A. Jan. 1, 2018 - Select - - Select - - Select - - Select - B. Dec. 31, 2018 - Select - - Select - - Select - - Select - C. Dec. 31, 2019 - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select -
On May 16, 20X1, Safeway Company received a 90-day, 10 percent, $7,000 interest-bearing note from Black Company in settlement of Black's past-due account. On June 30, Safeway discounted this note at Fargo Bank and Trust. The bank charged a discount rate of 15 percent. On August 14, Safeway received a notice that Black had paid the note and the interest on the due date. Required: Prepare the entries in general journal form to record these transactions. Analyze: If the company prepared a balance sheet on July 31, 20X1, how should Notes Receivable-Discounted be presented on the statement? Complete this question by entering your answers in the tabs below. General Journal Prepare the entries in general journal form to record these transactions. (Use 360 days a year. Round your intermediate calculations and final answers to 2 decimal places.) Analyze View transaction list Journal entry worksheet 1 Date May 16, 20X1 2 Record entry for a 90-day, 10% note accepted for past-due account. 3 Note:…
Sylvestor Systems borrows $50,000 cash on May 15 by signing a 90-day, 8%, $50,000 note. 1. On what date does this note mature? 2-a. Prepare the entry to record issuance of the note. 2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 2B Interest at Maturity On what date does this note mature? Required 1 Required 2A On what date does this note mature? Required 2B General Journal
Spring Designs & Decorators issued a 180-day, 9% note for $88,400, dated April 13 to Jaffe Furniture Company on account. Required: A. Determine the due date of the note. B. Determine the maturity value of the note. Assume a 360-day year when calculating interest. C. Journalize the entries to record the following: (1) receipt of the note by Jaffe Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.
During 2018, LeBron Corporation accepts the following notes receivable. a. On April 1, LeBron provides services to a customer on account. The customer signs a four-month, 9% note for $5,000. b. On June 1, LeBron lends cash to one of the company's vendors by accepting a six-month, 10% note for $9,000. c. On November 1, LeBron accepts payment for prior services by having a customer with a past-due account receivable sign a three- month, 8% note for $4,000. Required: Record the acceptance of each of the notes receivable. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
On September 1, 2018, Packaging Company. Borrowed OR 1,200,000 cash from Bank Muscat. The company issued a seven month, 10% promissory note. Interest was payable at maturity. The packaging financial period is the calendar year. Required: 1. Prepare the journal entry for the issuance of the note by the Packaging Company. 2. Prepare the appropriate adjusting entry for the note to record on December 31, 2018, by Packaging. 3. Prepare the journal entry for the payment of the note at maturity.
Please record the following journal entries: A) Record issuance of a notes payable B) record first monthly payment C) Record Second Monthly payment
Analyze and review the following items and determine the appropriate journal entry. Bank Loan Interest on the bank loan is 2.50% annually. Interest has to be paid on January 7, 2021; for 2020. The entire amount of the loan ($4,000,000) was outstanding during the entire year. No payments were made during the year. Of the bank loan, $1,000,000 is due June 30, 2021 with the remainder due June 30, 2026. Notes Payable This is a short-term note. The company borrowed money from JRT Investments on October 31, 2020 for 3 months. The principal, along with interest is to be repaid on January 31, 2021. The interest rate is 1.8%.
A business issued a 120-day, 6% note for $9,000 to a creditor on account. The company uses a 360-day year for interest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If an amount box does not require an entry, leave it blank. When required, round your answers to the nearest dollar. a. b.
On November 12, 2021, Jones Corporation borrows money at James National Bank by issuing a $10,000, 3 month, non-interest-bearing note. THe note is discounted on a 12% basis. Make a journal entry to record the issurance of the note.
On June 3, 20X1, Georgia State Company received a $10,400, 45-day, 10 percent note from Sampson Byrd, a customer whose account was past due. The note was discounted on June 18, 20X1 at the Georgia State Bank and Trust. The bank charged a discount rate of 12 percent. Required: Prepare the entry required by Georgia State when Sampson Byrd paid the discounted note on the maturity date. View transaction list Journal entry worksheet 1 Record entry for Sampson Byrd note discounted. Note: Enter debits before credits. Date July 18, 20X1 General Journal Debit Credit Record entry Clear entry View general journal
On July 18, Aui accepted a $15,000, 7¾%, 180-day note from Ryan. On October 5, Aui discounted the note at Brome Bank at 8¼%. What proceeds did Aui receive? Use ordinary interest.