Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rateof 7.45%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, thecompany made advances of $10, 750.00 and $12,000.00, respectively. On July 30, it made a payment of $5,000.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repaymentschedule from July 8 to August 31. (Round all monetary values to the nearest penny.) (Use a minus signbefore the dollar sign to denote a negative monetary value. For example, " - $149.63".) (Give all "Number ofDays" quantities as fractions with denominator 365.) Date Balance before Transaction Annual Interest RateNumber of Days Interest Charged Accrued Interest Payment (+) or Advance (-) Principal Amount Balanceafter Transaction Jul 8 $10, 750.00 Jul 30 7.45% Jul 31 7.45% Aug 14 7.45% Aug 31 7.45%

DatePayment (+) or Advances (-)RateJuly 8th-$10,750.007.45%July 30th$5,000.007.45%Aug…

Answered: Vertical Adventures has an open line of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2021, the following transactions related to receivables occurred: Feb. 28 Sold merchandise to Lennox, Inc., for $36,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note. June 30 Discounted the Lennox, Inc., note at the bank. The bank's discount rate is 12%. The note was discounted without recourse. Sep. 30 Lennox, Inc., paid the note amount plus interest to the bank. I've got the journal entry for the Feb. 28 transaction and the interest accrual on June 30 correct as seen below, but I cannot figure out the numbers needed as the debits for "Cash" and "Loss on Notes Receivable" on the transaction when the note is discounted to the bank. Date General Journal Debit Credit 28-Feb-21 Notes Receivable 36000 Sales Revenue 36000 30-Jun-21 Interest Receivable 1200 Interest Revenue 1200 30-Jun-21 Cash Loss on Notes Receivable Notes Receivable…
On December 1, Cheyenne Furniture Corporation borrowed $8,800 on a 90-day, 15% note. Prepare the entries to record the issuance of the note, the accrual of interest at year end, and the payment of the note. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
Sylvestor Systems borrows $183,000 cash on May 15 by signing a 90-day, 6%, $183,000 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 28 Interest at Maturity Required 1 Required ZA First, complete the table below to calculate the interest expense at maturity. Note: Use 360 days a year. Round final answers to the nearest whole dollar. Principal Rate(%) Time. Total interest Interest at Maturity $ Required 28 General Journal 183,000 6% 90/360
Lundquist Company received a 60-day, 7% note for $79,000, dated July 23, from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume 360 days in a year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.
Tamarisk, Inc. lent $12.136 to Martinez Corp., accepting Martinez's $12,500, three-month, zero-interest-bearing note. The implied interest is approximately 12%. Prepare Tamarisk's journal entries for the initial transaction and the collection of $12,500 at maturity. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation (To record initial transaction) (To record collection at maturity) Debit Credit DON
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:…
Lundquist Company received a 60-day, 9% note for $21,500, dated July 23, from a customer on account. Required: a)Determine the due date of the note. b)Determine the maturity value of the note. Assume 360 days in a year. c)Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.
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Exotic Furnishings Ltd. has a line of credit secured by the equity in the business. The limit on the line of credit is $45,000. Exotic owed $26,804.37 on its line of credit on July 1. The line of credit agreement requires a regular payment of $200.00 on the principal plus interest (including overdraft interest) by electronic transfer after closing on the last day of each month. Overdraft interest is 17% p.a. The line of credit interest is variable. It was 7.7% on July 1, 8.45% effective September 21, and 8.95% effective December 15. (a) Calculate the interest payments on July 31, August 31, September 30, October 31, November 30, and December 31. (b) What is the account balance on December 31? Click the icon to view the transactions for the period July 1 to December 31. (a) The amount of interest charged on July 31 is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) 13
On January 1, Year 1, Wedekind Company issued a $213,000, five-year, 4% installment note to Shannon Bank. The note requires annual payments of $47,846, beginning on December 31, Year 1. Required: Journalize the entries to record the following transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Year 1 Jan. Dec Year 4 Dec. 1 31 31 Issued the note for cash at its face amount Paid the annual payment on the note, which consisted of interest of $8,520 and principal of $39,326 Paid the annual payment on the note, including $3,610 of interest. The remainder of the payment reduced the principal balance on the note.
Prefix Supply Company received a 60-day, 5% note for $57,000 dated July 12 from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume a 360-day year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. a. Determine the due date of the note. September 10 b. Determine the maturity value of the note. Assume a 360-day year. (Note: Round computations to the nearest whole dollar.) c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.
Exotic Furnishings Ltd. has a line of credit secured by the equity in the business. The limit on the line of credit is $45,000. Exotic owed $25,631.97 on its line of credit on June 1. The line of credit agreement requires a regular payment of $300.00 on the principal plus interest (including overdraft interest) by electronic transfer after closing on the last day of each month. Overdraft interest is 19% p.a. The line of credit interest is variable. It was 5.7% on June 1, 6.65% effective August 23, and 5.95% effective November 15. (a) Calculate the interest payments on June 30, July 31, August 31, September 30, October 31, and November 30. (b) What is the account balance on November 30? Click the icon to view the transactions for the period June 1 to November 30. (a) The amount of interest charged on June 30 is $ ☐ . Transactions Principal Principal (Round the final answer to the nearest cent as needed. Round all intermediate values to six Date Withdrawal Payment Interest Payment June…

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