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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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.

Expert Solution & Answer

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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 13

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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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