Tony Acrobats lent $44,639 to Donaldson, Inc., accepting Donaldson's 2-year, $55,000, zero-interest-bearing note. The impliedinterest rate is 11%.Prepare Tony's journal entries for the initial transaction, recognition of interest each year, and the collection of $55,000 at maturity.(Round answers to O decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Creditaccount titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)Account Titles and Explanation(To record the initial transations)(To record the recognition of interest in year one)DebitICredit

Step 1: Preparation of Tony's journal entries NoDateAccount Titles and ExplanationDebitCredit1 Notes…

Answered: Tony Acrobats lent $44,639 to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Akbar Associates issued 120-day note for $50,000 to a creditor on a account. The note was discounted at 6%. Assuming a 360-day year: a. What cash proceeds would Akbar receive from the note? b. How much would Akbar repay the creditor at the note's maturity? =
BBY Company loaned $66,116 to Orwell, Inc, accepting Orwell's 2-year, $80,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare BBY's journal entries for the initial transaction, recognition of interest each year, and the collection of $80,000 at maturity. Debit - Notes Receivable $80,000 Credit - Credit - Cash Debit - Credit - Debit - Credit - Interest Revenue 6.026 DEC 16 618 10
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Doid Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldson's 2-year, $20,000, zero interest bearing note. The implied interest rate is 10% Prepare Dold's journal entries for the initial transaction. Notes Receivable 20.000 Cash 20,000
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Chang took out a loan for 146 days and was charged simple interest at an annual rate of 12.5%. The total interest he paid on the loan was $245. How much money did Chang borrow? Assume that there are 365 days in a year, and do not round any intermediate computations. If necessary, refer to the list of financial formulas. $0 Explanation 50°F Partly sunny A Check X 4 Ś ? T a 1 Ⓒ2022 McGraw Hill LLC. All Rights Reserved. Terms of U 27 W X PDF/
Leon Acrobats lent $12,174 to Donaldson, Inc., accepting Donaldson's 2-year, $15,000, zero-interest-bearing note. The implied interest rate is 11%. Prepare Leon's journal entries for the initial transaction, recognition of interest each year, and the collection of $15,000 at maturity. (Round answers to O decimal places, e.g. 5,275. 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.) Account Titles and Explanation (To record the initial transations) (To record the recognition of interest in year one) (To recognize the interest in year 2) Debit Credit [] |||||
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[The following information applies to the questions displayed below.] Agrico Inc. accepted a 10-month, 12.8% (annual rate), $9,000 note from one of its customers on May 15, 2019; interest is payable with the principal at maturity. b-1. Prepare the horizontal model to record collection of the note and interest at maturity. (Use amounts with + for increases and amounts with – for decreases.) Please don't provide solution image based thanku
Rex Corporation accepted a $4,000, 6%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October 11, Rex discounted the note at Park Bank at 7%. (Use Days in a year table.) a. What is the note's maturity value? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Maturity value b. What is the discount period? Discount period c. What is the bank discount? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Bank discount days d. What proceeds does Rex receive? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Proceeds received

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