Journalize the entries to record (a) the issuance of the note on March 1 and (b) the payment of the note at maturity. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles.
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A: Solution: Issuance of note to a creditor on accounts means a note payable issued to the creditor for…
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A: Maturity Value of Note will be Principal Amount and Interest on Note Interest = Principal * Interest…
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A:
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A: Long term debt = Total notes payable - current portion = $1000000 - 250000 = $750,000
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A: Calculate the interest amount as follows: Interest = Face value * Interest rate*Periods
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A: In the above question we have asked to pass journal entries at the time of issuance of notes payable…
Q: Prefix Supply Company received a 60-day, 4% note for $46,000 dated July 12 from a customer on…
A: Journal: Recording of a business transaction in a chronological order.
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A: Accrued Interest means the Interest which is already due but not paid with in the specific due date…
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A: Given information is: Value of Note Receivable = $1650 Interest rate = 8% Period = 4 months
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A: Notes receivable indicates the asset raised by the company by issuing a note which contains a…
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Q: Linstrum Company received a 60-day, 9% note for $56,000, dated July 23, from a customer on account.…
A: Notes receivable: Notes receivable is a agreement between lender and borrower for payment of…
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A: Total Interest = face value of notes x interest rate x no. of days/360 days = $24000*5%*90/360 =…
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A: The entry to record the payment should include Debit to Interest Expenses for $541.
Q: Lundquist Company received a 60-day, 7% note for $79,000, dated July 23, from a customer on account.…
A: Note receivable: Note receivable refers to a written promise received by the creditor from the…
Q: Spring Designs & Decorators issued a 180-day, 9% note for $88,400, dated April 13 to Jaffe Furniture…
A: A. due date of the note = Date of issue of note + Life of note in days
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A: A journal entry is prepared by the company to record the non-economic & economic transactions of…
Q: sued a 30-day, 7% note for $67,200 to a creditor on account. The company uses a 360-day year for…
A: Solution: Issuance of note to a creditor on accounts means note is issued to a creditor for their…
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A: A note receivable is a document which is written promise made which indicates an amount to be…
Q: Linstrum Company received a 60-day, 9% note for $56,000, dated July 23, from a customer on account.…
A: Note: We’ll answer the first two questions since the exact one wasn’t specified. Please submit a new…
Q: On March 1, Felton Company borrows $90,000 from Ottawa State Bank by signing a 6-month, 8%,…
A: Working note: Computation of interest expense: Interest expense=Amount borrowed×rate of…
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A: The entry to record accrued interest at the end of its fiscal year is as follows:- Accrued Interest…
Q: Spring Designs & Decorators issued a 180-day, 6% note for $76,800, dated April 13 to Jaffe…
A: A. Following are the calculation of due date of the note:
Q: A business issued a 45-day, 6% note for $210,000 to a creditor on account. Journalize the entries to…
A: a. Prepare journal entry to record the issuance of the note.
Q: A business issued a 120-day, 6% note for $10,000 to a creditor on account. The company uses a…
A: Hey, Since there are multiple questions posted, we will answer first question. If you want any…
Q: A company collects an honored note with a maturity date of 24 months from establishment, a…
A: Note receivable is one of the current asset of the business. It means business has to receive some…
Q: Spring Designs & Decorators issued a 120-day, 4% note for $60,000, dated April 13 to Jaffe…
A: a.Due date of the note = August 11
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A: The journal entries are prepared to keep the record of day to day transactions of the business.
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A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…
Q: Entries for notes payable A business issued a 45-day, 6% note for $210,000 to a creditor on…
A: Note payable is a form of loan or debt taken by the business on which it has to pay interest amounts…
Q: In the month of January beginning Peter company borrowed $ 5000 from Lios by issuing 10 % Note ,…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: During Year 1, a company accepts the following notes receivable. 1. On April 1, the company provides…
A: Journals are the books of primary entries. The business transactions are recorded at the initial…
Q: In the month of January beginning Peter company borrowed $ 5000 from Lios by issuing 10 % Note,…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Prefix Supply Company received 120-day, 8% note for $450,000, dated April 9, from a customer on…
A: Note receivable refers to a negotiable instrument. It represents the claim amount due on the…
Q: 1, Year 1, Wedekind Company issued a $170,000, five-year, 8% installment note to Shannon Bank. The…
A: Journal Entries Date Particulars Dr. Amount Cr Amount Jan 1 Cash A/C Dr. 170000…
Q: A business issued a 45-day, 6% note for $210,000 to a creditor on account. Required: Journalize…
A: Interest on notes = Notes payable x rate of interest x days/360 = $210,000*6%*45/360 = $1,575
Q: Spring Designs & Decorators issued a 180-day, 7% note for $65,400, dated April 13 to Jaffe…
A: Given:Face Value - $65,400Rate of Interest - 7%Time Period – 180 daysIssue Date – April 13Due date…
Q: A business issued a 30-day, 7% note for $33,600 to a creditor on account. The company uses a 360-day…
A: Note Payable are a form of liability for the business, on which regular interest payments needs to…
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A: Liabilities: Liabilities are referred to as the obligations of the business towards the creditors…
Q: Honeycomb Company issued a note receivable to a customer on September 1. The face value of the note…
A: Accrued interest on December 31 = Face Value of note receivable x interest rate x no. of months/12 =…
Q: Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on…
A: b)
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- A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest ExpenseOn 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.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.
- A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.Prefix Supply Company received a 60-day, 5% note for $57,000 dated July 12 from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume a 360-day year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. a. Determine the due date of the note. September 10 b. Determine the maturity value of the note. Assume a 360-day year. (Note: Round computations to the nearest whole dollar.) c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.
- Lundquist Company received a 60-day, 4% note for $46,000, dated July 23, from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume 360 days in a year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.Lundquist Company received a 60-day, 9% note for $21,500, dated July 23, from a customer on account. Required: a)Determine the due date of the note. b)Determine the maturity value of the note. Assume 360 days in a year. c)Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.A business issued a 45-day, 6% note for $210,000 to a creditor on account. Required: Journalize the entries to record (a) the issuance of the note on January 1 and (b) the payment of the note at maturity, including interest. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles.
- Lundquist Company received a 60-day, 6% note for $37,500, dated July 23, from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume 360 days in a year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 129 Allowance for Doubtful Accounts 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary REVENUE 410…Prefix Supply Company received a 60-day, 4% note for $46,000 dated July 12 from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume a 360-day year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Prefix Supply Company General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 129 Allowance for Doubtful Accounts 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY…A business issued a 30-day, 7% note for $67,200 to a creditor on account. The company uses a 360-day year for interest calculations. Required: Journalize the entries to record (a) the issuance of the note on April 30 and (b) the payment of the note at maturity, including interest. Refer to the Chart of Accounts for exact wording of account titles. Chart Of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Merchandise Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 215 Salaries Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 219 Employees State Income…