Financial Accounting-w/cd-package
3rd Edition
ISBN: 9780131060876
Author: REIMERS
Publisher: PEARSON
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Chapter 2, Problem 39PA
1.
To determine
Prepare
2.
To determine
Prepare the income statement, statement of changes in shareholders’ equity,
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Mohammed LLC is a growing consulting firm. The following transactions take place during the current year.
A. On June 10, Mohammed borrows $300,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 6%.
B. On July 9, Mohammed borrows an additional $120,000 with payment due in four months from July 9, and an annual interest rate of 10%.
C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan.
Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed. If an amount box does not require an entry, leave it blank. Round intermediate calculation and final answers to the nearest whole dollar.
June 10
fill in the blank 2
fill in the blank 3
fill in the blank 5
fill in the blank 6
July 9
fill in the blank 8
fill in the blank 9
fill in the blank 11
fill in the blank 12
Oct. 10
fill…
Mohammed LLC is a growing consulting firm. The following
transactions take place during the current year.
A. On June 10, Mohammed borrows $350,000 from a bank
to cover the initial cost of expansion. Terms of the loan are
payment due in four months from June 10, and annual
interest rate of 7%.
B. On July 9, Mohammed borrows an additional $110,000
with payment due in four months from July 9, and an
nnual interest rate of 14%.
C. Mohammed pays their accounts in full on October 10 for
the June 10 loan, and on November 9 for the July 9 loan.
Record the journal entries to recognize the initial
borrowings, and the two payments for Mohammed. If an
amount box does not require an entry, leave it blank.
Round intermediate calculation and final answers to
the nearest whole dollar.
June 10
July 9
Oct. 10
Nov. 9
Accounts Payable
Cash
Interest Expense
Merchandise Inventory
Short-Term Notes Payable
II II III III
II II III II
Mohammed LLC is a growing consulting firm. The following transactions take place during the current year.
A. On June 10, Mohammed borrows $310,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months
from June 10, and annual interest rate of 7%.
B. On July 9, Mohammed borrows an additional $120,000 with payment due in four months from July 9, and an annual interest rate of 14%.
C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan.
Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed. If an amount box does not require an entry,
leave it blank. Round intermediate calculation and final answers to the nearest whole dollar.
June 10
July 9
Oct. 10
Nov. 9
Chapter 2 Solutions
Financial Accounting-w/cd-package
Ch. 2 - Prob. 1YTCh. 2 - Prob. 2YTCh. 2 - Is prepaid insurance an expense or an asset?...Ch. 2 - Prob. 4YTCh. 2 - Give an example of the matching principle from the...Ch. 2 - What is the difference between cash basis and...Ch. 2 - Prob. 7YTCh. 2 - What is GAAP? What is IFRS?Ch. 2 - Prob. 2QCh. 2 - Prob. 3Q
Ch. 2 - Prob. 4QCh. 2 - Prob. 5QCh. 2 - What are the four basic financial statements?Ch. 2 - Which financial statement pertains to a single...Ch. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10QCh. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - What does recognize revenue mean in accounting?Ch. 2 - Prob. 14QCh. 2 - What is an accrual? What is a deferral?Ch. 2 - Must a company collect the money from a sale...Ch. 2 - What is the cost of goods sold?Ch. 2 - Explain the difference between cash basis...Ch. 2 - Prob. 19QCh. 2 - Prob. 20QCh. 2 - Prob. 21QCh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 6MCQCh. 2 - Prob. 7MCQCh. 2 - Prob. 8MCQCh. 2 - Prob. 9MCQCh. 2 - Prob. 10MCQCh. 2 - Elements of the financial statements. (LO 3). For...Ch. 2 - Prob. 2SEACh. 2 - Prob. 3SEACh. 2 - Prob. 4SEACh. 2 - Prob. 5SEACh. 2 - Prob. 6SEACh. 2 - Cash versus credit sales. (LO 3, 4). Company A had...Ch. 2 - Prob. 8SEACh. 2 - Prob. 9SEACh. 2 - Prob. 10SEACh. 2 - Prob. 11SEBCh. 2 - Prob. 12SEBCh. 2 - Prob. 13SEBCh. 2 - Prob. 14SEBCh. 2 - Prob. 15SEBCh. 2 - Prob. 16SEBCh. 2 - Prob. 17SEBCh. 2 - Prob. 18SEBCh. 2 - Prob. 19SEBCh. 2 - Prob. 20SEBCh. 2 - Prob. 21EACh. 2 - Prob. 22EACh. 2 - Prob. 23EACh. 2 - Balance sheet and income statement transactions....Ch. 2 - Prob. 25EACh. 2 - Prob. 26EACh. 2 - Prob. 27EACh. 2 - Prob. 28EACh. 2 - Elements of the financial statements. (LO 3). The...Ch. 2 - Prob. 30EBCh. 2 - Elements of the financial statements. (LO 3)....Ch. 2 - Prob. 32EBCh. 2 - Prob. 33EBCh. 2 - Prob. 34EBCh. 2 - Prob. 35EBCh. 2 - Current ratio. (LO 5). The following data was...Ch. 2 - Prob. 37PACh. 2 - Prob. 38PACh. 2 - Prob. 39PACh. 2 - Prob. 40PACh. 2 - Prob. 41PACh. 2 - Prob. 42PBCh. 2 - Prob. 43PBCh. 2 - Prob. 44PBCh. 2 - Prob. 45PBCh. 2 - Prob. 46PBCh. 2 - Prob. 1FSACh. 2 - Prob. 2FSACh. 2 - Prob. 3FSA
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