Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
22nd Edition
ISBN: 9781259542169
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 11, Problem 1BPSB
Problem 11-1B
Short-term notes payable transactions and entries PI
Warner Co. entered into the following transactions involving short-term liabilities in 2014 and 2015.
2014
Apr. 22 Purchased $5,000 of merchandise on credit from Fox Products, terms are 1 /10. n/30. Warner uses the perpetual inventory system.
May 23 Replaced the April 22 account payable to Fox Products with a 60-day. S4.600 note bearing 15% annual interest along with paying 5400 in cash.
July 15 Borrowed $12,000 cash from Spring Bank by signing a 120-day, 10% interest-bearing note with a face value of $12,000.
? Paid the amount due on the note to Fox Products at maturity.
? Paid the amount due on the note to Spring Bank at maturity.
Dec. 6 Borrowed $8,000 cash from City Bank by signing a 45-day, 9% interest-bearing note with a face value of $8,000.
31 Recorded an
2015
3 Paid the amount due on the note to City Bank at maturity.
Required
- Determine the maturity date for each of the three notes described.
- Determine the interest due at maturity for each of the three notes. (Assume a 360-day year.)
- Determine the interest expense to be recorded in the adjusting entry at the end of 2014.
- Determine the interest expense to be recorded in 2015.
- Prepare
journal entries for all the preceding transactions and events for years 2014 and 2015.
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Problem 12
Rosalie Co. uses the gross method to record sales made on credit. On June 10, 2020, it made sales of P100,000 with terms 2/10, n/30 to Finley Farms, Inc. On June 19, 2020, Rosalie received payment for 1/2 the amount due from Finley Farms. Rosalie’s fiscal year end is on June 30, 2020. What amount will be reported in the statement of financial position for the accounts receivable due from Finley farms, Inc.? _________ Problem 13
On the December 31, 2020 balance sheet of Mann Co., the current receivables consisted of the following: Trade accounts receivable 93,000 Allowance for uncollectible accounts (2,000) Claim against shipper for goods lost in transit (November 2020) 3,000 Selling price of unsold goods sent by Mann on consignment at 130% of cost (not included in Mann’s ending inventory) 26,000 Security deposit on lease of warehouse used for storing some inventories 30,000 Total 150,000 On December 31, 2020, the correct total of Mann’s current net receivables was…
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Required information
Problem 11-1A (Algo) Short-term notes payable transactions and entries LO P1
[The following information applies to the questions displayed below.]
Tyrell Company entered into the following transactions involving short-term liabilities.
Year 1
April 20 Purchased $38,000 of merchandise on credit from Locust, terms n/30.
May 19
Replaced the April 20 account payable to Locust with a 90-day, 9%, $35,000 note payable along with paying
$3,000 in cash.
July 8 Borrowed $60,000 cash from NBR Bank by signing a 120-day, 11%, $60,000 note payable.
_?____Paid the amount due on the note to Locust at the maturity date.
Paid the amount due on the note to NBR Bank at the maturity date.
November 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 8%, $24,000 note payable.
December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Year 2
_______ Paid the amount due on the note to Fargo Bank at the maturity date.
Problem 11-1A (Algo) Part 3
3.…
Problem 11-02A a-d
The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly.
Jan.
Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/30. (Blanco uses the perpetual inventory system.)
Feb.
Issued a 9%, 2-month, $30,000 note to Nunez in payment of account.
Mar.
31
Accrued interest for 2 months on Nunez note.
Apr.
1.
Paid face value and interest on Nunez note.
July
1
Purchased equipment from Marson Equipment paying $11,000 in cash and signing a 10%, 3-month, $60,000 note.
Sept. 30
Accrued interest for 3 months on Marson note.
Oct.
Paid face value and interest on Marson note.
Dec.
Borrowed $24,000 from the Paola Bank by issuing a 3-month, 8% note with
face value of $24,000.
Dec.
31
Recognized interest expense for 1 month on Paola Bank note.
Prepare journal entries for the listed transactions and events. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal…
Chapter 11 Solutions
Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - What are the three important questions concerning...Ch. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - Prob. 6DQCh. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - Prob. 9DQCh. 11 - Prob. 10DQ
Ch. 11 - Prob. 11DQCh. 11 - Prob. 12DQCh. 11 - Prob. 13DQCh. 11 - Prob. 14DQCh. 11 - Prob. 15DQCh. 11 - Prob. 16DQCh. 11 - Prob. 17DQCh. 11 - Classifying liabilities C1 Which of the following...Ch. 11 - Prob. 2QSCh. 11 - Prob. 3QSCh. 11 - Prob. 4QSCh. 11 - Prob. 5QSCh. 11 - Prob. 6QSCh. 11 - Prob. 7QSCh. 11 - Prob. 8QSCh. 11 - Prob. 9QSCh. 11 - Prob. 10QSCh. 11 - Prob. 11QSCh. 11 - Prob. 12QSCh. 11 - Prob. 13QSCh. 11 - Prob. 14QSCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Prob. 4ECh. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 -
Hitzu Co. sold a copier costing S4.800 with a...Ch. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prob. 13ECh. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 1APSACh. 11 - Prob. 2APSACh. 11 - Prob. 3APSACh. 11 - Prob. 4APSACh. 11 - Prob. 5APSACh. 11 - Prob. 6APSACh. 11 - Problem 11-1B Short-term notes payable...Ch. 11 - Prob. 2BPSBCh. 11 - Prob. 3BPSBCh. 11 - Prob. 4BPSBCh. 11 - Prob. 5BPSBCh. 11 - Prob. 6BPSBCh. 11 - Prob. 11SPCh. 11 - Prob. 11CPCh. 11 - Prob. 1GLPCh. 11 - Prob. 1BTNCh. 11 - Prob. 2BTNCh. 11 - Prob. 3BTNCh. 11 - Prob. 4BTNCh. 11 - Prob. 5BTNCh. 11 - Prob. 6BTNCh. 11 - Prob. 7BTNCh. 11 - Prob. 8BTNCh. 11 - Prob. 9BTN
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