Geary Corporation had the following transactions: · Apr. 15 - Received $6,000 from Marion Company and signed a 60-day, eight percent note payable. May 22 - Borrowed $50,000 from Sinclair Bank, signing a 60-day note at nine percent. • June 14 - Paid Marion Company the principal and interest due on the April 15th note payable. • July 13 - Purchased $15,000 of merchandise from Sharp Company; signed a 90-day note with eight percent interest. · July 21 - Paid the May 22 note due to Sinclair Bank. · Oct 02 - Borrowed $38,000 from Sinclair Bank, signing a 120-day note at twelve percent interest. • Oct 11 - Paid the note payable and accrued interest to the Sharp Company (July 13). Required: 1. Record these transactions in a general journal format. 2. Record any adjusting entries for interest in a general journal format. Geary Corporation has a December 31 year-end.

Geary Corporation had the following transactions: · Apr. 15 - Received $6,000 from Marion Company and signed a 60-day, eight percent note payable. May 22 - Borrowed $50,000 from Sinclair Bank, signing a 60-day note at nine percent. • June 14 - Paid Marion Company the principal and interest due on the April 15th note payable. • July 13 - Purchased $15,000 of merchandise from Sharp Company; signed a 90-day note with eight percent interest. · July 21 - Paid the May 22 note due to Sinclair Bank. · Oct 02 - Borrowed $38,000 from Sinclair Bank, signing a 120-day note at twelve percent interest. • Oct 11 - Paid the note payable and accrued interest to the Sharp Company (July 13). Required: 1. Record these transactions in a general journal format. 2. Record any adjusting entries for interest in a general journal format. Geary Corporation has a December 31 year-end.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
Samberg Incorporated had the following transactions. October 1 – Sold $20,500 of merchandise on account, 2/11, n/30 to McCormick Industries. November 1 - Received a $20, 500, 90 - day, 11% note from McCormick Industries to settle its $20, 500 unpaid balance. December 31 - Accrued interest on the note. (Round your answer to the nearest whole dollar amount.) January 31 - Received the interest on the note's maturity date. January 31 – Received the principal on the note's maturity date. (Round your answer to the nearest whole dollar amount.) Required: Prepare the required journal entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Geary Corporation had the following transactions: Apr. 15 - Issued a $6,000, 60-day, eight percent note payable in payment of an account with Marion Company. May 22 - Borrowed $50,000 from Sinclair Bank, signing a 60-day note at nine percent. June 14 - Paid Marion Company the principal and interest due on the April 15th note payable. July 13 - Purchased $15,000 of merchandise from Sharp Company; signed a 90-day note with eight percent interest. July 21 - Paid the May 22 note due to Sinclair Bank. Oct 02 - Borrowed $38,000 from Sinclair Bank, signing a 120-day note at twelve percent interest. Oct 11 - Paid the note payable and accrued interest to the Sharp Company (July 13). Record these transactions in general journal form. Record any adjusting entries for interest in general journal form. Geary Corporation has a December 31 year-end.
The following note transactions occurred during the year for Towell Company:On Nov. 25, Towell issued a 90-day, 9%, note payable for $40,000 to Hyatt Company for merchandise.On Dec. 7, Towell signed a 120-day, $60,000 note with the bank at 10%.On Dec 22, Towell gave Barr, Inc. a $12,000, 10%, 60-day note in payment of its account.Calculate the amount of the necessary interest accrual for each note payable at December 31.(Round to nearest whole dollar.) Lender Interest accrual Hyatt Company note Bank note Barr, Inc. note
Journal Entries for Accounts and Notes Payable Simon Company had the following transactions: Apr. 15 Issued a $6,000, 60-day, 8 percent note payable in payment of an account with Marion Company. May 22 Borrowed $45,000 from Sinclair Bank, signing a 60-day note at nine percent. Jun. 14 Paid Marion Company the principal and interest due on the April 15 note payable. Jul. 13 Purchased $15,000 of merchandise from Sharp Company; signed a 90-day note with ten percent interest. Jul. 21 Paid the May 22 note due Sinclair Bank. Oct. 2 Borrowed $38,000 from Sinclair Bank, signing a 120-day note at 12 percent. Oct. 11 Defaulted on the note payable to Sharp Company. Requireda. Record these transactions in general journal form.b. Record any adjusting entries for interest in general journal form. Simon Company has a December 31 year-end. Round answers to nearest dollar. Use 360 days for interest calculations.a. General Journal Date Description Debit Credit Apr.15…
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The following items were selected from among the transactions completed by Shin Co. during the current year: Jan. 10 Purchased merchandise on account from Beckham Co., $420,000, terms n/30. Feb. 9 Issued a 30-day, 6% note for $420,000 to Beckham Co., on account. Mar. 11 Paid Beckham Co. the amount owed on the note of February 9. May 1 Borrowed $240,000 from Verity Bank, issuing a 45-day, 5% note. June 1 Purchased tools by issuing a $312,000, 60-day note to Rassmuessen Co., which discounted the note at the rate of 5%. 15 Paid Verity Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $240,000. (Journalize both the debit and credit to the notes payable account.) July 30 Paid Verity Bank the amount due on the note of June 15. 30 Paid Rassmuessen Co. the amount due on the note of June 1. Dec. 1 Purchased office equipment from Lambert Co. for $700,500 paying $160,500 and issuing a series of ten 5% notes for $54,000…
On December 1, Williams Company borrowed $45,000 cash from Second National Bank by signing a 90-day, 9% note payable. a. Prepare Williams' journal entry to record the issuance of the note payable. b. Prepare Williams' journal entry to record the accrued interest due at December 31. c. Prepare Williams' journal entry to record the payment of the note on March 1 of the next year.
Tyrell Co. entered into the following transactions involving short-term liabilities. Year 1 Apr. 20 Purchased $40,250 of merchandise on credit from Locust, terms n∕30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. ___?___ Paid the amount due on the note to Locust at the maturity date. ___?___ Paid the amount due on the note to NBR Bank at the maturity date. Nov. 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 note payable. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 ___?___ Paid the amount due on the note to Fargo Bank at the maturity date. Required 1. Determine the maturity date for each of the three notes described. 2. Determine the interest due at maturity for each of the three notes. Assume a 360-day year. 3. Determine the interest…
Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $37,500 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 8 %, $35,000 note payable along with paying $2,500 in cash. July 8 Borrowed $57,000 cash from NBR Bank by signing a 120-day, 11%, $57,000 note payable. _?Paid the amount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 9%, $24,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 _?_ Paid the amount due on the note to Fargo Bank at the maturity date. 5. Prepare journal entries for all the preceding transactions and events. Note: Do not round your intermediate calculations. View transaction list < Journal entry worksheet 1 2 3 4 5 6 7 8 Purchased $37,500 of…
The following selected transactions were taken from the books of Ripley Company for Year 1: 1. On February 1, Year 1, borrowed $70,000 cash from the local bank. The note had a 6 percent interest rate and was due on June 1, Year 1. 2. Cash sales for the year amounted to $240,000 plus sales tax at the rate of 7 percent. 3. Ripley provides a 90-day warranty on the merchandise sold. The warranty expense is estimated to be 1 percent of sales. 4. Paid the sales tax to the state sales tax agency on $210,000 of the sales. 5. Paid the note due on June 1 and the related interest. 6. On November 1, Year 1, borrowed $20,000 cash from the local bank. The note had a 6 percent interest rate and a one-year term to maturity 7. Paid $2.100 in warranty repairs. 8. A customer has filed a lawsuit against Ripley for $1 million for breach of contract. The company attorney does not believe the suit has merit. Required a. Answer the following questions: 1. What amount of cash did Ripley pay for interest during…