Cornerstones of Financial Accounting - With CengageNow
4th Edition
ISBN: 9781337760959
Author: Rich
Publisher: CENGAGE L
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Chapter 8, Problem 76APSA
To determine
(a)
Introduction:
The company issues notes payable to the lender as a promise to pay the principal amount along with the stated interest on specified date.
To record:
To determine
(b)
Introduction:
The company issues notes payable to the lender as a promise to pay the principal amount along with the stated interest on specified date.
To record:
To determine
(c)
Introduction:
The company issues notes payable to the lender as a promise to pay the principal amount along with the stated interest on specified date.
To record:
Journal entry on 1st March 2021.
To determine
(d)
Introduction:
The company issues notes payable to the lender as a promise to pay the principal amount along with the stated interest on specified date.
To record:
Journal entry on 1st July 2021.
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Students have asked these similar questions
Gatsby, Inc. owed $500,000 on account for inventory purchased on November 1,
2020. The company's fiscal year ends on December 31. Gatsby was unable to pay the
amount owed by February 1, 2021 due date because of financial difficulties
experienced in early 2021. On February 1, 2021, it signed a $500,000, 10% interest-
bearing note. This note was repaid with interest on September 1, 2021. How much
interest should Gasby recognize on September 1, 2021 (enter your answer in whole
dollars, no comma or dollar sign)?
Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021.
2020
Mar.
14
Purchased merchandise on credit from Ferris Inc. for $152,000. The termswere 1/10, n/30 (assume a perpetual inventory system).
Apr.
14
Zing paid $31,000 cash and replaced the $121,000 remaining balance of the accountpayable to Ferris Inc. with a 4%, 60-day note payable.
May
21
Borrowed $131,000 from Scotiabank by signing a 3.5%, 90-day note.
?
Paid the note to Ferris Inc. at maturity.
?
Paid the note to Scotiabank at maturity.
Dec.
15
Borrowed $106,000 and signed a 4.25%, 120-day note with National Bank.
Dec.
31
Recorded an adjusting entry for the accrual of interest on the note to National Bank.
2021
?
Paid the note to National Bank at maturity.
Required:1. Determine the maturity dates of the three notes just described.
HINT: Maturity Date of Ferris Inc, Scotiabank, National bank respectively.
Present journal entries…
Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021.
2020
Mar.
14
Purchased merchandise on credit from Ferris Inc. for $160,000. The termswere 1/10, n/30 (assume a perpetual inventory system).
Apr.
14
Zing paid $35,000 cash and replaced the $125,000 remaining balance of the accountpayable to Ferris Inc. with a 6%, 60-day note payable.
May
21
Borrowed $135,000 from Scotiabank by signing a 5.5%, 90-day note.
?
Paid the note to Ferris Inc. at maturity.
?
Paid the note to Scotiabank at maturity.
Dec.
15
Borrowed $110,000 and signed a 6.25%, 120-day note with National Bank.
Dec.
31
Recorded an adjusting entry for the accrual of interest on the note to National Bank.
2021
?
Paid the note to National Bank at maturity.
Required:1. Determine the maturity dates of the three notes just described.
2. Present journal entries for each of the preceding dates. (Use 365 days an year. Do not round…
Chapter 8 Solutions
Cornerstones of Financial Accounting - With CengageNow
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Prob. 19DQCh. 8 - Prob. 20DQCh. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Prob. 3MCQCh. 8 - Refer to the information for Kinsella Seed above....Ch. 8 - Prob. 5MCQCh. 8 - Prob. 6MCQCh. 8 - Prob. 7MCQCh. 8 - Prob. 8MCQCh. 8 - Prob. 9MCQCh. 8 - When a credit is made to federal income taxes...Ch. 8 - Prob. 11MCQCh. 8 - Prob. 12MCQCh. 8 - Prob. 13MCQCh. 8 - Prob. 14MCQCh. 8 - Prob. 15MCQCh. 8 - Prob. 16MCQCh. 8 - Prob. 17MCQCh. 8 - Which of the following transactions would cause...Ch. 8 - Issuing Notes Payable On June 30, Carmean Inc....Ch. 8 - Notes Payable Rogers Machinery Company borrowed...Ch. 8 - Prob. 21CECh. 8 - Accrued Interest On March 1, the Garner...Ch. 8 - Prob. 23CECh. 8 - Prob. 24CECh. 8 - Sales Tax Cobb Baseball Bats sold 45 bats for $50...Ch. 8 - Payroll Taxes Hernandez Builders has a gross...Ch. 8 - Prob. 27CECh. 8 - Prob. 28CECh. 8 - Unearned Sales Revenue Brand Landscaping offers a...Ch. 8 - Prob. 30CECh. 8 - Prob. 31CECh. 8 - Prob. 32CECh. 8 - Liquidity Ratios NWAs financial statements contain...Ch. 8 - Prob. 34CECh. 8 - Accounts Payable On May 18, Stanton Electronics...Ch. 8 - Accounts and Notes Payable On February 15, Barbour...Ch. 8 - Issuing Notes Payable On September 30, Bello...Ch. 8 - Notes Payable Renchen Company, which manufactures...Ch. 8 - Accrued Interest On July 1, Brimley Company issued...Ch. 8 - Accrued Interest On May 1, the Garnett Corporation...Ch. 8 - Accrued Property Taxes Annual property taxes...Ch. 8 - Accrued Income Taxes Nolan Inc. had taxable income...Ch. 8 - Prob. 43BECh. 8 - Accrued Wages A company employs a part-time staff...Ch. 8 - Prob. 45BECh. 8 - Prob. 46BECh. 8 - Prob. 47BECh. 8 - Prob. 48BECh. 8 - Payroll Taxes Sids Grocery Store has 100 employees...Ch. 8 - Prob. 50BECh. 8 - Payroll Taxes Its the Tooth Dental works to...Ch. 8 - Unearned Sales Revenue Curtiss Carpet Cleaning...Ch. 8 - Unearned Rent Revenue Mannion Property Management...Ch. 8 - Contingent Liabilities Many companies provide...Ch. 8 - Prob. 55BECh. 8 - Prob. 56BECh. 8 - Prob. 57BECh. 8 - Liquidity Ratios JRLs financial statements contain...Ch. 8 - Prob. 59BECh. 8 - Prob. 60ECh. 8 - Recording Various Liabilities Glenview Hardware...Ch. 8 - Recording Various Liabilities Plymouth Electronics...Ch. 8 - Reporting Liabilities Morton Electronics had the...Ch. 8 - Accounts Payable Sleek Ride, a company providing...Ch. 8 - Accrued Liabilities Charger Inc. had the following...Ch. 8 - Accrued Liabilities Thornwood Tile had the...Ch. 8 - Prob. 67ECh. 8 - Payroll Accounting and Discussion of Labor Costs...Ch. 8 - Unearned Revenue Jennifers Landscaping Services...Ch. 8 - Prob. 70ECh. 8 - Warranties Eds Athletics sells bicycles and other...Ch. 8 - Ratio Analysis Intel Corporation provided the...Ch. 8 - Payable Transactions Richmond Company engaged in...Ch. 8 - Payroll Accounting Jet Enterprises has the...Ch. 8 - Note Payable and Accrued Interest Fairbome Company...Ch. 8 - Prob. 76APSACh. 8 - Prob. 77APSACh. 8 - Prob. 78APSACh. 8 - Prob. 79APSACh. 8 - Ratio Analysis Consider the following information...Ch. 8 - Payable Transactions Daniels Company engaged in...Ch. 8 - Payroll Accounting McLaughlin Manufacturing has...Ch. 8 - Note Payable and Accrued Interest Ellsworth...Ch. 8 - Prob. 76BPSBCh. 8 - Prob. 77BPSBCh. 8 - Prob. 78BPSBCh. 8 - Prob. 79BPSBCh. 8 - Ratio Analysis Consider the following information...Ch. 8 - Prob. 81.1CCh. 8 - Prob. 81.2CCh. 8 - Prob. 81.3CCh. 8 - Prob. 82.1CCh. 8 - Prob. 82.2CCh. 8 - Prob. 82.3CCh. 8 - Prob. 83.1CCh. 8 - Prob. 83.2CCh. 8 - Prob. 83.3CCh. 8 - Prob. 83.4CCh. 8 - Prob. 83.5CCh. 8 - Prob. 83.6CCh. 8 - Prob. 83.7CCh. 8 - Prob. 83.8CCh. 8 - Prob. 83.9CCh. 8 - Prob. 84.1CCh. 8 - Prob. 84.2CCh. 8 - Prob. 84.3CCh. 8 - Prob. 84.4CCh. 8 - Prob. 84.5CCh. 8 - Comparative Analysis: Under Armour, Inc., versus...Ch. 8 - Prob. 84.7CCh. 8 - Prob. 84.8CCh. 8 - Prob. 85.1CCh. 8 - Prob. 85.2CCh. 8 - Prob. 85.3C
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