Liabilities: Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid. Accrued interest: Accrued interest is used in accrual accounting. It is the amount of interest that paid on the loan amount accumulated on the principal investment. To Record: the issuance of the notes payable by Technology T.

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Answer 1

Question

Chapter 8, Problem 8.3E

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

Accrued interest:

Accrued interest is used in accrual accounting. It is the amount of interest that paid on the loan amount accumulated on the principal investment.

To Record: the issuance of the notes payable by Technology T.

To determine

To Record: the appropriate adjustment for the note payable by Technology T on December 31, 2018.

To determine

To Record: the payment of the note payable by Technology T at maturity.

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Exercise 9-2 (Algo) Record installment notes (LO9-2) On January 1, 2024, Royal Paradise borrows $42,000 by agreeing to a 5%, four-year note with the bank. Loan payments of $967.23 are due at the end of each month with the first installment due on January 31, 2024. Required: Record the issuance of the installment note payable and the first two monthly payments. (Do not round intermediate calculations. Round your final answers to 2 decimal places. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 2 3 Date January 01, 2024 Cash Answer is complete but not entirely correct. General Journal Notes Payable January 31, 2024 Interest Expense Notes Payable Cash February 29, 2024 Interest Expense Notes Payable Cash ✓ ✓ ✓ ✓ ✓ *** Debit 42,000.00 175.00✔ 792.23✔ 170.97 X 796.26 X Credit 42,000.00✔ 967.23✔ 967.23✔

Vaughn Manufacturing lends Pina Colada industries $51600 on August 1, 2022, accepting a 9-month, 12% interest note. If Vaughn Manufacturing accrued interest at its December 31, 2022 year-end, what entry must it make to record the collection of the note and interest at its maturity date? Cash 56244 Notes Receivable 51600 Interest Revenue 4644 Cash 56244 Notes Receivable 51600 Interest Receivable 2580 Interest Revenue 2064 Cash 56244 Notes Receivable 56244 Notes Receivable 51600 Interest Receivable 2580 Interest Revenue 2064 Cash 56244

Problem 8-2A (Algo) Record notes payable and notes receivable (LO8-2) Precision Cestparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.4 million cash on October 1, 2024, to provide working capital for anticipated expension. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each company has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. 2. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. 3. Prepare the journal entries on September 30, 2025, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. Complete this question by entering your answers in the tabs below. Required 2 Required 3…

Answer 2

Question

Chapter 8, Problem 8.3E

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

Accrued interest:

Accrued interest is used in accrual accounting. It is the amount of interest that paid on the loan amount accumulated on the principal investment.

To Record: the issuance of the notes payable by Technology T.

To determine

To Record: the appropriate adjustment for the note payable by Technology T on December 31, 2018.

To determine

To Record: the payment of the note payable by Technology T at maturity.

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 8.3E

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

Accrued interest:

Accrued interest is used in accrual accounting. It is the amount of interest that paid on the loan amount accumulated on the principal investment.

To Record: the issuance of the notes payable by Technology T.

To determine

To Record: the appropriate adjustment for the note payable by Technology T on December 31, 2018.

To determine

To Record: the payment of the note payable by Technology T at maturity.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 8.3E

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

Accrued interest:

Accrued interest is used in accrual accounting. It is the amount of interest that paid on the loan amount accumulated on the principal investment.

To Record: the issuance of the notes payable by Technology T.

To determine

To Record: the appropriate adjustment for the note payable by Technology T on December 31, 2018.

To determine

To Record: the payment of the note payable by Technology T at maturity.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.3E

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

Accrued interest:

Accrued interest is used in accrual accounting. It is the amount of interest that paid on the loan amount accumulated on the principal investment.

To Record: the issuance of the notes payable by Technology T.

To determine

To Record: the appropriate adjustment for the note payable by Technology T on December 31, 2018.

To determine

To Record: the payment of the note payable by Technology T at maturity.

Answer 6

Chapter 8, Problem 8.3E

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

Accrued interest:

Accrued interest is used in accrual accounting. It is the amount of interest that paid on the loan amount accumulated on the principal investment.

To Record: the issuance of the notes payable by Technology T.

Answer 7

Chapter 8, Problem 8.3E

To determine

Liabilities:

Liabilities are an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liabilities or a non-current liabilities depending upon the time period in which it is paid.

Accrued interest:

Accrued interest is used in accrual accounting. It is the amount of interest that paid on the loan amount accumulated on the principal investment.

To Record: the issuance of the notes payable by Technology T.

Answer 8

To determine

To Record: the appropriate adjustment for the note payable by Technology T on December 31, 2018.

Answer 9

To determine

To Record: the appropriate adjustment for the note payable by Technology T on December 31, 2018.

Answer 10

To determine

To Record: the payment of the note payable by Technology T at maturity.

Answer 11

To determine

To Record: the payment of the note payable by Technology T at maturity.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 8 - Prob. 1RQ Ch. 8 - Prob. 2RQ Ch. 8 - Prob. 3RQ Ch. 8 - Provide examples of current liabilities in the...Ch. 8 - Prob. 5RQ Ch. 8 - Prob. 6RQ Ch. 8 - How does commercial paper differ from a normal...Ch. 8 - Prob. 8RQ Ch. 8 - Prob. 9RQ Ch. 8 - Prob. 10RQ

Solution Summary: The author explains that liabilities are an obligation of the business to pay to the creditors in future for goods and services purchased on account or any for other financial benefit received. Accrued interest is used in accrual accounting.

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To Record: the appropriate adjustment for the note payable by Technology T on December 31, 2018.

To Record: the payment of the note payable by Technology T at maturity.

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