Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Chapter 2, Problem 2.4BE
• LO2–2
Prepare journal entries for each of the following transactions for a company that has a fiscal year-end of December 31: (1) on October 1, $12,000 was paid for a one-year fire insurance policy; (2) on June 30 the company lent its chief financial officer $10,000; principal and interest at 6% are due in one year; and (3) equipment costing $60,000 was purchased at the beginning of the year for cash.
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Question 6 - : On October 1, 2022, Xerox Equipment Inc. sold specialized office equipment to Bellamy Co. and received a 2-year, $120,000 8% note in lieu of cash. Interest is received annually on the note on October 1 and Xerox financial year ends December 31.
Fill in the necessary information identified by the numbering to complete the journal entries at the given dates.
a. October 1, 2022 Dr. Cr.
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I Answer 1 Question 6
II Answer 2 Question 6
III $Answer 3 Question 6
b. December 31, 2022 Dr. Cr.
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I Answer 4 Question 6
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The following transactions took place for Smart Solutions Incorporated.
ces
2020
a. July 1
Loaned $70,000 to employees of the company and received back one-year, 10 percent notes.
b. December 31 Accrued interest on the notes.
2021
c. July 1
d. July 1
Required:
Prepare the journal entries that Smart Solutions Incorporated would record for the above transactions. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Received interest on the notes. (No interest has been recorded since December 31.)
Received principal on the notes.
Journal entry worksheet
1
Loaned $70,000 to employees of the company and received back one-year, 10
percent notes. Record the transaction.
2
Note: Enter debits before credits.
<
Date
July 01, 2020
<
Journal entry worksheet
1
Date
Note: Enter debits before credits.
December 31, 2020
Record entry
1
Accrued interest on the notes. Record the transaction.
2
Journal entry worksheet
2…
Current Attempt in Progress
The following transactions occurred in Wendell Corporation, which has a December 31 year end.
1
2.
3.
4.
5.
6.
7
8.
10.
Wendell has received $9,000 from customers in advance (on deposit) for inventory that will be shipped to those customers
next year.
Wendell signed a five-year, 7%, $200,000 note payable on July 1. The note requires annual instalment payments of $48,778
principal and interest on June 30 each of the next five years.
Wendell purchased inventory for $120,000 on December 23 on account, terms n/30, FOB shipping point. The inventory was
shipped on December 28 and received by Wendell on January 2.
Wendell received $10,000 from customers on December 21 for services to be performed in January.
On December 31, Wendell sold inventory for $8,000, plus 13% HST. The cost of goods sold was $5,000. The company uses a
perpetual inventory system.
Weekly salaries of $18,000 are paid every Friday for a five-day workweek (Monday to Friday). This year, December…
Chapter 2 Solutions
Intermediate Accounting
Ch. 2 - Explain the difference between external events and...Ch. 2 - Each economic event or transaction will have a...Ch. 2 - What is the purpose of a journal? What is the...Ch. 2 - Explain the difference between permanent accounts...Ch. 2 - Describe how debits and credits affect assets,...Ch. 2 - Describe how debits and credits affect temporary...Ch. 2 - What is the first step in the accounting...Ch. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 2.10Q
Ch. 2 - What is an unadjusted trial balance? An adjusted...Ch. 2 - Define adjusting entries and discuss their...Ch. 2 - Define closing entries and their purpose.Ch. 2 - Define prepaid expenses and provide at least two...Ch. 2 - Deferred revenues represent liabilities recorded...Ch. 2 - Define accrued liabilities. What adjusting journal...Ch. 2 - Prob. 2.17QCh. 2 - [Based on Appendix A] What is the purpose of a...Ch. 2 - [Based on Appendix B] Define reversing entries and...Ch. 2 - [Based on Appendix C] What is the purpose of...Ch. 2 - Prob. 2.21QCh. 2 - Transaction analysis LO21 The Marchetti Soup...Ch. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Prob. 2.3BECh. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; income determination LO24,...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Income determination LO24 If none of the...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Closing entries LO27 The year-end adjusted trial...Ch. 2 - Prob. 2.13BECh. 2 - Transaction analysis LO21 The following...Ch. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Journal entries LO22 The following transactions...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Transaction analysis; debits and credits LO22...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; solving for unknowns LO24,...Ch. 2 - Adjusting entries LO25 The Mazzanti Wholesale...Ch. 2 - Financial statements and closing entries LO26,...Ch. 2 - Closing entries LO27 American Chip Corporations...Ch. 2 - Prob. 2.14ECh. 2 - Cash versus accrual accounting; adjusting entries ...Ch. 2 - External transactions and adjusting entries LO22,...Ch. 2 - Accrual accounting income determination LO24,...Ch. 2 - Cash versus accrual accounting LO28 Stanley and...Ch. 2 - Prob. 2.19ECh. 2 - Worksheet Appendix 2A The December 31, 2018,...Ch. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.25ECh. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Adjusting entries LO25 Pastina Company sells...Ch. 2 - Accounting cycle; adjusting entries through...Ch. 2 - Adjusting entries LO25 Howarth Companys fiscal...Ch. 2 - Accounting cycle LO22 through LO27 The general...Ch. 2 - Adjusting entries and income effects LO22, LO25...Ch. 2 - Adjusting entries LO25 Excalibur Corporation...Ch. 2 - Accounting cycle; unadjusted trial balance through...Ch. 2 - Prob. 2.10PCh. 2 - Prob. 2.11PCh. 2 - Cash versus accrual accounting LO28 Zambrano...Ch. 2 - Worksheet Appendix 2A Using the information from...Ch. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Prob. 2.2BYPCh. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Continuing Cases Target Case LO24, LO28 Target...
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- Saved Exercise 9-4 Interest-bearlng notes payable with year-end adjustments LO P1 Keesha Co. borrows $235,000 cash on November 1 of the current year by signing a 90-day, 11%, $235,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Req 4 What is the amount of interest expense in the current year and the following year from this note? (Use 360 days a year. Round final answers to the nearest whole dollar.) es Interest Total through maturity Interest Expense Current Year Expense Following Year Principal Rate (%) Time Total interestarrow_forwardAccounting question: If you are doing a balance sheet with notes payable of 96,600. Assuming 13,600 of the note payable will be paid the following year. Where are how do you enter it. Long Term Liability?arrow_forwardNotes Receivable (short term) Accounts: Notes Receivable Interest Receivable Interest Income (or Interest Revenue) Terms: Maturity Value Face Value Issue Date Promissory Note Has a Face Amount, a Term, and an Interest Rate (expressed as an annual percentage) Need to calculate the due date of the note. Example: Assume that a 120-day note is signed on March 11. What is the maturity date of the note? Term of the note Days that pass in March: Chapter 8-Receivables Number of days in March 31 Date of the note 11 Number of days left Days that pass in April Number of days left Days that pass in May Number of days left Days that pass in June Number of days left 9931; therefore, the due date is July 9 Interest is not charged on the date the note is signed. Therefore, you should begin counting on the day after the date on the note to determine the due date. 120 Does it really matter whether you collect the note on July 9 or July 10? Accepting payment on a note one day late without charging…arrow_forward
- 12arrow_forwardNeed help with Accounting Journalsarrow_forwardP Flag question Your employer has agreed to place year-end deposits of OMR 910 one year from today, OMR 1,820 two years from today, and OMR 2,730 three years from today into your retirement account. If your account earns 4% per year, how much money will you have in the account at the end of year three when the last deposit is made? Select one: a. OMR 5,607.06 b. OMR 6,805.52 c. OMR 6,087.66 d. OMR 5,853.52 e. OMR 5,831.34arrow_forward
- plz help thank youarrow_forwardممكن حل Be11_2 وBe_3 وBe_4 جميعهاarrow_forward1 Book Hint Print rences Keesha Company borrows $240,000 cash on December 1 of the current year by signing a 120-day, 10 %, $240,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Note: Use 360 days a year. Do not round intermediate calculations. View transaction list 1 No 1 2 Transaction (a) (b) Req 4 View journal entry worksheet Cash Notes payable Interest expense General Journal Debit 240,000 4,000 Credit Check my work 240,000 Jenilarrow_forward
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