Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.05%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $13,500.00 and $13,750.00, respectively. On July 30, it made a payment of $8,500.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance before Transaction Annual Interest Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance (-) Amount Principal Balance after Transaction Jul 8 $13,500.00 Jul 30 7.05% Jul 31 7.05% Aug 14 7.05% Aug 31 7.05%

Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.05%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $13,500.00 and $13,750.00, respectively. On July 30, it made a payment of $8,500.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance before Transaction Annual Interest Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance (-) Amount Principal Balance after Transaction Jul 8 $13,500.00 Jul 30 7.05% Jul 31 7.05% Aug 14 7.05% Aug 31 7.05%

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.
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?
American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?
Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.25%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $11,250.00 and $12,750.00, respectively. On July 30, it made a payment of $7,250.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. ( Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "$$149.63) (Give all "Number of Days" quantities as fractions with denominator 365.) \table[[Date ,\table[[Balance], [before], [Transaction]], \table[[Annual], [Interest] [Rate]],\table[[Number], [of Days]]\table[[Interest],[ Charged]]\table[[Accrued], [Interest]], \table[[Payment], [(+) or], [Advance], [(-) Vertical Adventures has an open line of credit with a zero balance at its credit union…
Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.45%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $12,500.00 and $10,750.00, respectively. On July 30, it made a payment of $7,500.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance (-) Principal Balance after Amount Transaction Jul 8 $12,500.00 Jul 30 7.45% Jul 31 7.45% Aug 14 7.45% Aug 31 7.45%
Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.45%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $10, 750.00 and $12,000.00, respectively. On July 30, it made a payment of $ 5,000.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, " - $149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance before Transaction Annual Interest Rate Number of Days Interest Charged Accrued Interest Payment (+) or Advance (-) Principal Amount Balance after Transaction Jul 8 $10, 750.00 Jul 30 7.45% Jul 31 7.45% Aug 14 7.45% Aug 31 7.45%
Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.4%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $13,000.00 and $14,750.00, respectively. On July 30, it made a payment of $7,750.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, “-$149.63") (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance Annual before Interest Transaction Rate Number of Days Interest Accrued Charged Interest Payment (+) or Advance (-) Principal Balance after Amount Transaction Jul 8 $13,000.00 Jul 30 7.4% Jul 31 7.4% Aug 14 7.4% Aug 31 7.4% on this problem
Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.05%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $10,500.00 and $13,250.00, respectively. On July 30, it made a payment of $5,000.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) Jul 8 $10,500.00 Jul 30 7.05% Jul 31 7.05% Aug 14 7.05% Aug 31 7.05%
On May 9 Rainbow Daycare established an open line of credit with its bank and immediately withdrew $25,000. The interest rate was set at prime + 4.75%, and the prime rate was 6.75%. The line of credit requires a payment on the 9th of every month in the amount of "$1,000 or 5% of the current balance, whichever is greater." Rainbow Daycare tookanother advance of $15,000 on June 2. It made a payment of $28,000 on July 16. The prime rate decreased by 0.5% on June 30. Create a repayment schedule from May 9 to August 9 and calculate the total interest paid by Rainbow Daycare.
Springer Products wishes to borrow $90,000 from a local bank using its accounts receivable to secure the loan. The bank's policy is to accept as collateral any accounts that are normally paid within 30 days of the end of the credit period, as long as the average age of the account is not greater than the customer's average payment period. Springer's accounts receivable, their average ages, and the average payment period for each customer are shown in the following table: Customer Accounts Receivable Average age of account Average payment period of customer A $11,000 42 days 50 days B $25,000 70 days 65 days C $10,000 48 days 45 days D $28,000 55 days 50 days E $14,000 50 days 60 days F $19,000 21 days 35 days G $30,000 10 days 30 days H $16,000 25 days 40 days…
On November 30, accounts receivable in the amount of P900,000 were assigned to Hello Finance Co. by Maymay Incorporated as security for a loan of P750,000. Hello charged a 3% commission on the accounts; the interest rate on the note is 12%. During December, Maymay collected P350,000 on assigned accounts after deducting P560 of discounts. Maymay wrote off a P530 assigned account. On December 31, Maymay remitted to Hello the amount collected plus one month's interest on the note. REQUIRED: 1.) How much is Maymay's equity in the assigned accounts receivable as of December 31?
On December 1, Cheyenne Furniture Corporation borrowed $8,800 on a 90-day, 15% note. Prepare the entries to record the issuance of the note, the accrual of interest at year end, and the payment of the note. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit