The Yankel Corporation's controller prepares adjusting entries only at the end of the fiscal year. The following adjusting entries were prepared on December 31, 2024: General Journal Interest expense Interest payable Insurance expense Prepaid insurance Interest receivable Interest revenue Debit 1,870 68,000 3,740 Credit Additional information: 1. The company borrowed $34,000 on June 30, 2024. Principal and interest are due on June 30, 2025. This note is the company's only interest-bearing debt. 1. Interest rate 2. Month of insurance payment 3. Principal 1,870 68,000 3,740 2. Insurance for the year on the company's office buildings is $102,000. The insurance is paid in advance. 3. On August 31, 2024, Yankel lent money to a customer. The customer signed a note with principal and interest at 6% due in one year. Required: 1. What is the interest rate on the company's note payable? 2. The 2024 surance payment was made at the beginning of which month? 3. How much did Yankel lend its customer on August 31? %
The Yankel Corporation's controller prepares adjusting entries only at the end of the fiscal year. The following adjusting entries were prepared on December 31, 2024: General Journal Interest expense Interest payable Insurance expense Prepaid insurance Interest receivable Interest revenue Debit 1,870 68,000 3,740 Credit Additional information: 1. The company borrowed $34,000 on June 30, 2024. Principal and interest are due on June 30, 2025. This note is the company's only interest-bearing debt. 1. Interest rate 2. Month of insurance payment 3. Principal 1,870 68,000 3,740 2. Insurance for the year on the company's office buildings is $102,000. The insurance is paid in advance. 3. On August 31, 2024, Yankel lent money to a customer. The customer signed a note with principal and interest at 6% due in one year. Required: 1. What is the interest rate on the company's note payable? 2. The 2024 surance payment was made at the beginning of which month? 3. How much did Yankel lend its customer on August 31? %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Yankel Corporation's controller prepares adjusting entries only at the end of the fiscal year. The following adjusting entries were
prepared on December 31, 2024:
General Journal
Interest expense
Interest payable
Insurance expense
Prepaid insurance
Interest receivable
Interest revenue
Debit
1,870
68,000
3,740
1. Interest rate
2. Month of insurance payment
3. Principal
Credit
Additional information:
1. The company borrowed $34,000 on June 30, 2024. Principal and interest are due on June 30, 2025. This note is the company's
only interest-bearing debt.
2. Insurance for the year on the company's office buildings is $102,000. The insurance is paid in advance.
3. On August 31, 2024, Yankel lent money to a customer. The customer signed a note with principal and interest at 6% due in one
year.
1,870
68,000
3, 740
Required:
1. What is the interest rate on the company's note payable?
2. The 2024 insurance payment was made at the beginning of which month?
3. How much did Yankel lend its customer on August 31?
%
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