INTERM.ACCT.:REPORTING...-CENGAGENOWV2
3rd Edition
ISBN: 9781337909358
Author: WAHLEN
Publisher: CENGAGE L
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Chapter 6, Problem 11RE
On December 1 of the current year, Jordan Inc. assigns $125,000 of its
Refer to RE6-10. On December 31, Jordan Inc. received $50,000 on assigned accounts. Prepare Jordan’s journal entries to record the cash receipt and the payment to McLaughlin.
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On December 1, Farley Corporation assigns $250,000 of its accounts receivable to Greenhouse Company for cash. Greenhouse charges a $1,500 service fee, advances 80% of Farley’s accounts receivable and charges a 7% interest rate on any outstanding loan balance.
A. Prepare the journal entries to record the financing arrangement on Farley’s books.
B. On December 31, Farley Received $40,000, on assigned accounts. Prepare the journal entries to record the cash collection on the receivable and the payment to Greenhouse. (Round your final number to the nearest dollar).
Lundquist Company received a 60-day, 4% note for $46,000, dated July 23, from a customer on account.
Required:
a. Determine the due date of the note.
b. Determine the maturity value of the note. Assume 360 days in a year.
c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.
Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on account.
Required:
a. Determine the due date of the note.
b. Determine the maturity value of the note. Assume a 360-day year.
C. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account
titles.
Chapter 6 Solutions
INTERM.ACCT.:REPORTING...-CENGAGENOWV2
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