INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
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Zenephia Corp. accepted a nine-month note receivable from a customer on October 1, 2022. If Zenephia has an accounting period that ends on December 31, 2022, when would it most likely recognize interest income from the note?
a.on October 1, 2022
b.on July 1, 2023, only
c.on December 31, 2022, and July 1, 2023
d.on December 31, 2022, only
Perfect Pet Company gave a creditor a 90-day, 6% note payable for $28,000 on December 1, 2019. What amount of interest will be accrued as of December 31, 2019? Where will this amount be reported in the company’s financial statements?
Show how the preceding information would be reported on Furman’s year-end balance sheet (assume the note payable is short-term).
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- Can the 10,000 note be repaid on May 1? Explain.arrow_forwardIf the Prepaid Insurance account had a balance of $12,000, representing one years policy premium, which was paid on July 1, what entry would be needed to adjust the Prepaid Insurance account at the end of December, before preparing the financial statements?arrow_forwardA bank lent P350,000 to a customer on December 1, 2019 that required the customer to pay an annual percentage rate of 12% on the amount of the loan. The loan is due in six months and no payment of interest or principal is to be made until the note is due on May 31, 2020. 14. Prepare the initial entries to record the given loan. 15. What date should be used to record the December adjusting entry? 16. What are the accounts involved in the adjusting entries? 17. Prepare the adjusting entries.arrow_forward
- If at the end of the year Allowance for Uncollectible Accounts has a credit balance before any adjustment, what might that tell us about last year’s ending balance of the account?arrow_forwardWhat if the invoice date is 12/27, but the invoice is about next year's sevices, should we record the acount payable at 12/31 for this invoice?arrow_forwardb. On September 1, 2019 the Robbem Co. received a $30,000 note receivable from a customer in exchange for an accounts receivable. The note will pay interest at a rate of 12% and principal and interest is due in 9 months (June 1, 2020). Instructions: 1. Compute the maturity value of the note. 2. Prepare the journal entry on September 1, 2019, the date the note was received. 3. Prepare the adjusting journal entry on December 31, 2019, to accrue the interest earned to date 1 pause B altarrow_forward
- May you help me find the correct entry ABC would make on the maturity date?arrow_forwardExample 4 (Notes Receivable): On November 30, 2020, James Co. lent money to Scott Co. and issued a 5-month, $120,000, 8% note receivable. Scott paid James the full amount of interest and principal on April 30, 2021. What is the journal entry for James Co. to record the issuance of the note receivable? What is the end-of-year adjusting journal entry for James Co. to record interest revenue earned as of December 31?arrow_forwardWHAT IS THE TOTAL AMOUNT INCLUDED IN THE "TRADE AND OTHER RECEIVABLE"arrow_forward
- 4. Determine the ending balance of AccountsReceivable as of December 31, 2019. 5. What is the net realizable value of thereceivables at the end of 2019? 6. The company has a notes receivable ofRp24,000 at January 15, 2019 for 3 months at10% interest rate. Prepare journal entry as ofApril 15, 2019, on its due date.arrow_forwardWhat amount of interest expense would the company report in 2020 For this accounting question?arrow_forwardNeed Answerarrow_forward
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