The closing balance of notes payable for each month. Given information: Accounts receivables assigned for $900,000. Borrowed amount is $850,000. Interest is 6% payable on balance of loan at the beginning of the month Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

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Answer 1

Question

Chapter 9, Problem 9.8P

a.

To determine

The closing balance of notes payable for each month.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

b.

To determine

To prepare: The journal entries to record the financing arrangement.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

c.

To determine

The accounting treatment in case of pledging.

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Kubin Company’s relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 4.20 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 5.20 Fixed selling expense $ 3.70 Fixed administrative expense $ 2.70 Sales commissions $ 1.20 Variable administrative expense $ 0.70 Required: For financial accounting purposes, what is the total product cost incurred to make 12,500 units? For financial accounting purposes, what is the total period cost incurred to sell 12,500 units? For financial accounting purposes, what is the total product cost incurred to make 14,000 units? For financial accounting purposes, what is the total period cost incurred to sell 11,000 units?

Choose a manufacturing company then discuss the following: First, name your company and list its main products and direct materials used. What is spoilage? Give an example of spoilage that might occur during the manufacturing of the company's product. What is scrap? Give an example of scrap that might occur during the manufacturing of the company's product. What does rework mean? Give an example of rework that might occur during the manufacturing of the company's product. A leading manufacturer recently said, "What has been regarded as normal spoilage in the past will not acceptable as normal spoilage in the future? What are they talking about? What do you think are the external or internal factors that may affect the level of normal spoilage in the future?

Answer 2

Question

Chapter 9, Problem 9.8P

a.

To determine

The closing balance of notes payable for each month.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

b.

To determine

To prepare: The journal entries to record the financing arrangement.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

c.

To determine

The accounting treatment in case of pledging.

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Answer 3

Question

Chapter 9, Problem 9.8P

a.

To determine

The closing balance of notes payable for each month.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

b.

To determine

To prepare: The journal entries to record the financing arrangement.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

c.

To determine

The accounting treatment in case of pledging.

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Answer 4

Question

Chapter 9, Problem 9.8P

a.

To determine

The closing balance of notes payable for each month.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

b.

To determine

To prepare: The journal entries to record the financing arrangement.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

c.

To determine

The accounting treatment in case of pledging.

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Answer 5

Chapter 9, Problem 9.8P

a.

To determine

The closing balance of notes payable for each month.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

b.

To determine

To prepare: The journal entries to record the financing arrangement.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

c.

To determine

The accounting treatment in case of pledging.

Answer 6

Chapter 9, Problem 9.8P

a.

To determine

The closing balance of notes payable for each month.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

Answer 7

Chapter 9, Problem 9.8P

a.

To determine

The closing balance of notes payable for each month.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

Answer 8

b.

To determine

To prepare: The journal entries to record the financing arrangement.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

Answer 9

b.

To determine

To prepare: The journal entries to record the financing arrangement.

Given information:

Accounts receivables assigned for $900,000.

Borrowed amount is $850,000.

Interest is 6% payable on balance of loan at the beginning of the month

Accounts receivables collected are $100,000 in April, $487,000 in May and $113,000 in June.

Answer 10

c.

To determine

The accounting treatment in case of pledging.

Answer 11

c.

To determine

The accounting treatment in case of pledging.

Answer 12

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Answer 14

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Answer 15

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Solution Summary: The author explains journalizing as the process of recording the transactions of an organization in a chronological order.

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