On August 1, Batson Company issued a 60-day note with a face amount of $91,800 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest calculations.a. Determine the proceeds of the note assuming the note carries an interest rate of 12%.b. Determine the proceeds of the note assuming the note is discounted at 12%.

Answer: Note are issued at the face value or the discounted value. When price of the note is the…

Answered: On August 1, Batson Company issued a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...

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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.
Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
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 Expense
Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
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.
Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for merchandise. The merchandise had a cost to Rain T-Shirts of $220,300. The terms of the note are 24-month maturity date on December 31, 2019 at a 4.5% annual interest rate. Larry Potts does not pay on his account and dishonors the note. Record journal entries for Rain T-Shirts for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
On August 1, Batson Company issued a 60-day note with a face amount of $85,200 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest computations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 12%. $ b. Determine the proceeds of the note assuming the note is discounted at 12%.
On August 1, Batson Company issued a 60-day note with a face amount of $140,000 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest computations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 6%. $fill in the blank 1 b. Determine the proceeds of the note assuming the note is discounted at 6%.
On August 1, Batson Company issued a 60-day note with a face amount of $47,400 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest calculations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 12%.fill in the blank 1 b. Determine the proceeds of the note assuming the note is discounted at 12%.fill in the blank 2
On August 1, Batson Company issued a 60-day note with a face amount of $80,400 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest computations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 8%.fill in the blank 1 of 2$ b. Determine the proceeds of the note assuming the note is discounted at 8%.fill in the blank 2 of 2$
Valley Designs issued a 90-day, 9% note for $96,000, dated April 19, to Bork Furniture Company on account. Assume 360 days in a year when computing the interest. a. Determine the due date of the note. b. Determine the maturity value of the note. Journalize the entry to record the receipt of the note by Bork Furniture. If an amount box does not require an entry, leave it blank. Journalize the entry to record the receipt of the note by Bork Furniture. If an amount box does not require an entry, leave it blank. Notes Receivable Accounts receivable valley designs Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank. Cash Notes Receivable Interest Revenue
Watson Company issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. Assume a 360-day year when calculating interest. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. c-1. Journalize the entries to record the receipt of the note by the payee.* c-2. Journalize the entries to record the receipt by the payee of the amount due on the note at maturity.* *Refer to the Chart of Accounts for exact wording of account titles. Round answers to the nearest $1. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. c-1. Journalize the entries to record the receipt of the note by the payee.* c-2. Journalize the entries to record the receipt by the payee of the amount due on the note at maturity.* *Refer to the Chart of Accounts for exact wording of account titles. Round answers to the nearest $1. X First Questions…

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