TB MC Qu. 8-56 (Algo) On November 1, 2024, a company... On November 1, 2024, a company signed a $112,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2025. The compar recorded accrued interest on December 31, 2024. The payment of the note and interest on May 1, 2025, causes assets to decrease by $115,360 and which of the following? (Do not round your intermediate calculations.) Multiple Choice Liabilities to decrease by $112,000 and stockholders' equity to decrease by $6,720. Liabilities to decrease by $113,120 and stockholders' equity to decrease by $2,240. Liabilities to decrease by $115,360.

TB MC Qu. 8-56 (Algo) On November 1, 2024, a company... On November 1, 2024, a company signed a $112,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2025. The compar recorded accrued interest on December 31, 2024. The payment of the note and interest on May 1, 2025, causes assets to decrease by $115,360 and which of the following? (Do not round your intermediate calculations.) Multiple Choice Liabilities to decrease by $112,000 and stockholders' equity to decrease by $6,720. Liabilities to decrease by $113,120 and stockholders' equity to decrease by $2,240. Liabilities to decrease by $115,360.

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

On July 8, Jones Inc. issued an $79,100, 6%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends on July 31. Using the 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year? Round your answer to the nearest whole dollar. a.$303 b.$659 c.$791 d.$396
ok The following transactions took place for Smart Solutions Incorporated. ces 2020 a. July 1 Loaned $70,000 to employees of the company and received back one-year, 10 percent notes. b. December 31 Accrued interest on the notes. 2021 c. July 1 d. July 1 Required: Prepare the journal entries that Smart Solutions Incorporated would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Received interest on the notes. (No interest has been recorded since December 31.) Received principal on the notes. Journal entry worksheet 1 Loaned $70,000 to employees of the company and received back one-year, 10 percent notes. Record the transaction. 2 Note: Enter debits before credits. < Date July 01, 2020 < Journal entry worksheet 1 Date Note: Enter debits before credits. December 31, 2020 Record entry 1 Accrued interest on the notes. Record the transaction. 2 Journal entry worksheet 2…
acc
180 - Our business opened a 1-year term deposit account of 180.000 TL on 01.08.2020. The interest rate is 16%. Which of the following accounts is correct to use in the accrual record to be made on 31.12.2020? a) 642 Interest Income Hs. 28.800 TL (Creditor) B) 642 Interest Income Hs. 9.600 TL (Creditor) NS) 181 Income Accruals Hs. 19.200 TL (Borrower) D) 181 Income Accruals Hs. 12.000 TL (Borrower) TO) 642 Interest Income Hs. 8.800 TL (Creditor)
C.S.Sunland Company had the following transactions involving notes payable. July 1, 2025 Nov. 1, 2025 Dec. 31, 2025 Feb. 1, 2026 Apr. 1, 2026 Borrows $55,950 from First National Bank by signing a 9-month, 8% note. Borrows $59,000 from Lyon County State Bank by signing a 3-month, 6% note. Prepares adjusting entries. Pays principal and interest to Lyon County State Bank. Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. (List all debit entries before credit entries. Credit acc
On January 1, 2021, Bank Nizwa. issued RO 90,000, five-year, 12% bonds at (100% of face value). Assume that interest is payable semiannually on January 1 and July 1. Prepare the entry to record the payment of interest on July 1, 2021 Select one: O a. Interest Expense 5,400 Cash 5,400 O b. Interest Payable 10,800 Interest Expenses 10,800 O c. Interest Payable 5,400 Interest Expenses 5,400 O d. Interest Expense 10,800 Cash 10,800 Cirill lis ais!
Vi.2
Blue Inc. reports under IFRS and has adopted the policy of classifying interest received as an investing activity. During 2023, Blue lent $29,000 to a key supplier in exchange for a two-year interest-bearing promissory note. Interest revenue earned on the note and recorded on the statement of income was in the amount of $1,230 and a balance of $410 for interest receivable was reported on the statement of financial position at December 31, 2023, relating to the note. Prepare Blue's cash flows from (used by) investing activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a negative sign e.g. -15,000 or in parenthesis e.g. (15,000).) Blue Inc. Statement of Cash Flows > tA tA
Required Information [The following information applies to the questions displayed below.] Agrico Incorporated accepted a 10-month, 11% (annual rate), $5,650 note from one of its customers on July 15, 2022; Interest is payable with the principal at maturity. b-2. Prepare the journal entry to record collection of the note and Interest at maturity. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld. Do not round your Intermediate calculation. Round your answers to 2 decimal places. View transaction list View journal entry worksheet No A Event 1 Cash Interest payable Interest revenue Note receivable General Journal Debit Credit Ⓒ
17,18,19 and 20
Madison Company issued an interest-bearing note payable with a face amount of $25,800 and a stated interest rate of 8s to the Metropolitan Bark on August 1, Year 1. The note carried a one year term. Based on this information alone, the amount of total liablities appearing on Madisoris Year 1 balance sheet would be Select one O A $25,800 OB $27864 OC $26,660 OD $27,004 Denver Co. issued bonds with a face value of $79,000 and a stated interest rate of 7% The bonds have a life of five years and were sold at 103.50. If Denver amortizes discounts and premiums using the straight ine method, the amount of interest expense each full year would be Select one O A S6083. OB. $5530. OC S4977. OD $5724. Victor Company issued bonds with a $400,000 face value and a 3% stated rate of interest on January 1, Year 1. The bonds carried a Syear term and sold for 93. Victor uses the straight-line method of amortization. Interest is payable on December 31 of each year. The carrying value of the bond…
On January 1, 2021, CPS Co. borrowed $340,000 cash from iLend and issued a five-year $340,000, 4% note. Interest was payable annually on December 31. Required: Prepare the journal entries for both firms to record interest at December 31, 2021.