Chapter 3, Problem 13E

A company purchased a certificate of deposit (a short-term investment that pays interest to the purchaser when it matures) on March 1 that will pay $120 of interest 3 months from that date when it matures. On March 31, which of the following adjusting journal entries would be made?   Account Debit Credit A. Interest receivable 120                            Interest revenue   120 B. Interest receivable 40                            Interest revenue   40 C. Interest receivable 120                            Unearned revenue   120 D. No entry is recorded on March 31.      Group of answer choices A. B. C. D.

A gift shop signs a three-month note payable on May 1/2020 of OMR 36,000 with an annual interest of 10%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date? Select one: O a. Debit Interest Expense, 2,400; Credit Interest Payable, 2,400. b. Debit Prepaid Interest, 2,000; Credit Interest Expense, 2,000. c. Debit Interest Expense, 2,100; Credit Interest Payable, 2,100. d. None of the answers are correct e. Debit Interest Expense, 2,400; Credit Prepaid Interest, 2,400.

On December 1, Daw Company accepts a $48,000, 45-day, 10% note from a customer. (1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. (2) Prepare the entry required on the note's maturity date assuming it is honored. (Use 360 days a year.) View transaction list Journal entry worksheet 1 2 Record the year-end adjustment related to this note, if any. Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit Credit View general journal >

On December 1, Daw Co. accepts a $10,000, 45-day, 6% note from a customer. (1) Prepare the year-end adjusting entry to record accrued interest revenue on December 31. (2) Prepare the entry required on the note’s maturity date assuming it is honored.

Tresses, Inc., which has a December 31 year end, lent $1,000 on December 1 to an employee at 6% due in 6 months. When will Tresses record Interest Revenue? It will record. . Multiple choice question. a daily entry with a debit to Interest Receivable and credit to Interest Revenue for each day's interest generated an adjusting entry on December 31 with a debit to Interest Receivable and credit to Interest Revenue for the interest generated in December interest earned on the payment date with a debit to Cash and credit to Interest Revenue for the 6 months of interest generated

Allentown Services Inc. is preparing adjusting entries for the year ending December 31, 2019.The following data are available:a. Interest is owed at December 31, 2019, on a 6-month, 8% note. Allentown borrowed$120,000 from NBD on September 1, 2019.b. Allentown provides daily building maintenance services to Mack Trucks for a quarterly feeof $2,700 payable on the fifteenth of the month following the end of each quarter. No entrieshave been made for the services provided to Mack Trucks during the quarter ended December31, and the related bill will not be sent until January 15, 2020.c. At the beginning of 2019, the cost of office supplies on hand was $1,220. During 2019, officesupplies with a total cost of $6,480 were purchased from Office Depot and debited to officesupplies inventory. On December 31, 2019, Allentown determined the cost of office supplieson hand to be $970.d. On September 23, 2019, Allentown received a $7,650 payment from Bethlehem Steel for9 months of maintenance…

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Reed Co. had the following transactions (see below) during November and December of 2025. Requirements: 1. What amount of interest will Reed pay in 2025 (use 360 days in calculations as needed)? Record the journal entries for each of the transactions listed below. Record any necessary year-end adjusting journal entries for related to these transactions. Record the payment of the note in 2026. Transactions       1-Nov-25 Issued a note to the bank with the following terms.  Interest and principal paid at maturity.   Days 75       Interest Rate 5.00%       Face Amount  $      75,000.00               1-Dec-25 Received $18,000 cash from a customer as an advanced payment for services to be provided and earned evenly for 1 year.                       10-Dec-25 Made cash sales, not including sales tax) of  $    100,000.00       Cost of goods sold for these sales of           81,000.00       Associated sales tax rate is  6%               30-Dec-25 Paid the sales…

For each of the following items, write the journal entry first (if one is needed) to record the transactions; and then the adjusting entry, if any is required , for the end of the accounting year of Ron Car Rental Company on December 31, 2020.1. On December 1, borrowed $300,000 cash from Nation Bank by issuing a promissory note with an interest of 12% per annum payable in three months.2. On December 1, paid rental for six months beginning December 1, 2019 to May 31, 2020 at $3,000 per month.3. On December31, 2020, recieved telephone bills for the month December amounting to $5,600. The bill will be paid on January 20204. On Dec. 1, 2020, the company acquired a Computer worth $16,000 with 3 year useful life and $1,000 salvage value.