ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
Author: Weygandt
Publisher: WILEY
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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 November 1, 2021, Aviation Training Corp. borrows $60,000 cash from Community Savings and Loan. Aviation Training signs a three-month, 7% note payable. Interest is payable at maturity. Aviation’s year-end is December 31.Required:1. Record the note payable by Aviation Training.2. Record the appropriate adjustment for the note by Aviation Training on December 31, 2021.3. Record the payment of the note at maturity.
On November 1, 2024, Survival Training Corporation borrows $49,000 cash from Community Savings and Loan. Survival Training signs
a three-month, 6% note payable. Interest is payable at maturity. Survival's year-end is December 31.
Required:
1. to 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field.)
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- Please do not Give image formatarrow_forwardHi, How do i solve for the missing amounts?arrow_forwardMidshipmen Company borrows $19,000 from Falcon Company on July 1, 2024. Midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on June 30, 2025. Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below for Falcon Company. 3. Calculate the 2024 year-end adjusted balances of Interest Receivable and Interest Revenue (assuming the balance of Interest Receivable at the beginning of the year is $0).arrow_forward
- 99) On November 1, Casey's Snowboards signed a $12,000, 90-day, 5% note payable to cover a past due account payable. a. What amount of interest expense on this note should Casey's Snowboards report on year-end December 31? b. Prepare Casey's journal entry to record the issuance of the note payable. c. Prepare Casey's adjusting journal entry at the end of the year December 31. d. Prepare Casey's journal entry to record the payment of the note on January 30 of the following year.arrow_forwardConcord Company borrows $61,200 on July 1 from the bank by signing a $61,200, 10%, one-year note payable. (a) Prepare the journal entry to record the proceeds of the note.(b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the yeararrow_forwardOn January 1, 2021, Umbrella Insurance Company has collected $24,000 for multiple two-year insurance premiums and recorded the funds in Unearned Revenue. Umbrella records insurance revenue on a monthly basis. How much will be in the Unearned Revenue account on November 30, 2021?arrow_forward
- On March 1, the Garner Corporation borrowed $75,000 from the First Bank of Midlothian on a 1-year, 5% note. Required: Hide If the company keeps its records on a calendar year, what adjusting entry should Garner make on December 31? Dec. 31 (Record accrual of interest expense)arrow_forwardJoni Corporation borrows $500,000 from Bank A on Feb. 1, 20X8. The principal will not be repaid until the end of 6 years, but interest payments are due every February 1st. The interest rate is 3% annually. Record the entry necessary for each of the following 1. The signing of the loan 2.The interest accrual on 12/31/20x8 3.The payment of interest on 2/1/20X9arrow_forwardOn September 15, 2018, Oliver's Mortuary received a $7,200, nine-month note bearing interest at an annual rate of 8% from the estate of Jay Hendrix for services rendered. Oliver's has a December 31 year-end. What adjusting entry will the company record on December 31, 2018? Multiple Choice Interest receivable 168 Notes receivable 168 Interest receivable 576 Interest revenue 168 Cash 408 Interest receivable 408 Interest revenue 408 Interest receivable 168 Interest revenue 168arrow_forward
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