thly issues, beginning in January 20Y6. In addition, the business had taxable income of $920,000 during the first calendar quarter of 20Y6. The federal tax rate is 30%. A quarterly tax payment will be made on April 12, 20Y6. Prepare the “Current liabilities” section of the balance shee

Q: 1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month,…

A: Formula: Interest amount = Notes payable amount x Time period x Interest rate.

Q: Company issued a short-term debt of $65,000 on July 1, 2021 for a period of 5 months with a note…

A: Notes Payable are the debt instrument which has been used by the organisation to arrange a short…

Q: Bon Nebo Co. sold 18,000 annual subscriptions of Magazine 20XX for $44 during December 20Y8. These…

A: Given that Taxable income = $500000 Federal tax rate = 40%

Q: Bon Nebo Co. sold 13,000 annual subscriptions of Bjorn for $63 during December 20Y5. These new…

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Q: On 1/1/X1, Caldwell Corp. borrowed $450,000 by agreeing to a 9%, 9-year installment note with the…

A: Note means an instrument acknowledging as debt due from one party to another party. Interest bearing…

Q: Current Liabilities Bon Nebo Co. sold 14,000 annual subscriptions of Bjorn for $46 during December…

A: Liabilities: A liability is a legal obligation to pay other entities as a result of past…

Q: Bon Nebo Co. sold 12,500 annual subscriptions of Bjorn for $45 during December 20Y5. These new…

A: Current liabilities: Current liabilities are a company's short-term financial obligations that are…

Q: Apex Corporation borrowed $1,800,000 on January 1, 2020. The note agreement specifies that it will…

A: Let's break down the problem step by step to understand how to fill in the journal entries.1.…

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Q: On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is…

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Q: On January 1, Year 1, Beatie Company borrowed $400,000 cash from Central Bank by issuing a…

A: Amortization schedule of interest and principal payment for 5 periods is as under:

Q: Provide the right answer

A: Approach to solving the question: The key steps to solve this problem are:1. Calculate the unearned…

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A: Step 1: The journal entries for issuance and payment of notes payable are passed as follows:-…

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A: When we made a payment against a note Payable as liability decreases notes Payable account will be…

Q: Bon Nebo Co. sold 12,000 annual subscriptions of Bjorn for $44 during December 2015. These new…

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Q: Colson Company has a line of credit with Federal Bank. Colson can borrow up to $375,000 at any time…

A:

Q: 1) On October 1, 20x1, Metro Bank loaned $8,000,000 and received a 5-month promissory note with 10%…

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Q: Current liabilities Bon Nebo Co. sold 11,500 annual subscriptions of Bjorn for $53 during December…

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Q: Bon Nebo Co. sold 18,500 annual subscriptions of Bjorn for $57 during December 20Y5. These new…

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A: Prepare the journal entry for the issuance of the note:

Q: On January 1, 2025, Cullumber Corporation issued $610,000 of 9% bonds, due in 10 years. The bonds…

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Q: Bon Nebo Co. sold 15,500 annual subscriptions of Bjorn for $62 during December 20Y5. These new…

A: Federal income taxes payable = Taxable income x Federal tax rate = $604000*35% = $211,400

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Q: Bon Nebo Co. sold 13,000 annual subscriptions of Bjorn for $46 during December 20Y5. These new…

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Q: The Company issued a short-term debt of $65,000 on July 1, 2021 for a period of 5 months with a note…

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.