A 29.Subject:- accounting During 2024. Pronghorn Co. borrowed cash from Wildhorse Company by issuing notes payable as follows:2 June 1, 2024, issued an eight-month, 5% note for $88,800. Interest and principal are payable at maturity.October 1, 2024, issued a three-month, 8% note for $33,600. Interest is payable monthly on the first day of the month.Principal is payable at maturity.Pronghorn has a November 30 fiscal year end and prepares adjusting entries on an annual basis.2(a)✓ Your answer is correctPrepare all necessary journal entries for Pronghorn to record the notes. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amountsRecord journal entries in the order presented in the problem. List oll debit entries before credit entries)Account Titles and ExplanationNotes PayableDateCashNotes PayableAccount Titles and Explanation(Paid interest expense on note issued Oct. 1. 2024)(To accrue interest on note issued June 1, 2024)(To accrue interest on note issued Oct. 1, 2024)Prepare all necessary interest payment transactions for Pronghorn in 2024 and 2025. Prepare separate adjusting entries for eachnote. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "NoEntry for the account titles and enter O for the amounts List all debit entries before credit entries)(Pay interest owed on note issued Oct. 1, 2024)(Pay principal and interest on note issued Oct. 1. 2024)Debit(Pay principal and interest on note issued June 1, 2024)8640033400CreditDebit68000334000000 000 00 00

The journal entry refers to the posting of business transactions in the books of accounts. The…

During 2024, Pronghorn Co. borrowed cash from Wildhorse Company by issuing notes payable as follows: 2 June 1, 2024, issued an eight-month, 5% note for $88,800. Interest and principal are payable at maturity. 2 October 1, 2024, issued a three-month, 8% note for $33,600. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Pronghom has a November 30 fiscal year end and prepares adjusting entries on an annual basis. ✓ Your answer is correct. Prepare all necessary journal entries for Pronghorn to record the notes. (Credit account titles are automatically indented when 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 olf debit entries before credit entries) Account Titles and Explanation Cash Notes Payable Cash Notes Pavah's Debit 90000 33400 Credit 66600 33400

During 2024, Pronghorn Co. borrowed cash from Wildhorse Company by issuing notes payable as follows: 2 June 1, 2024, issued an eight-month, 5% note for $88,800. Interest and principal are payable at maturity. 2 October 1, 2024, issued a three-month, 8% note for $33,600. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Pronghom has a November 30 fiscal year end and prepares adjusting entries on an annual basis. ✓ Your answer is correct. Prepare all necessary journal entries for Pronghorn to record the notes. (Credit account titles are automatically indented when 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 olf debit entries before credit entries) Account Titles and Explanation Cash Notes Payable Cash Notes Pavah's Debit 90000 33400 Credit 66600 33400

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

See similar textbooks

Similar questions

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
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 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.
During 2024, Lane Co. borrowed cash from Greenberg Company by issuing notes payable as follows: 1. July 1, 2024, issued an eight-month, 4% note for $75,000. Interest and principal are payable at maturity. 2. November 1, 2024, issued a three-month, 5% note for $42,000. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Lane has a December 31 fiscal year end and prepares adjusting entries on an annual basis. A) Prepare all necessary journal entries for Lane Co. to record the notes. B) Prepare the necessary interest payment transactions for Lane in 2024 and 2025. Prepare separate adjusting entries for each note. (Don't understand this part, please explain steps for the $ used and dates.) Date Account Titles and Explanation Debit Credit - - - - - - - - - - (To accrue interest on note issued July 1, 2024.) - - - - - (To accrue interest on note issued Nov. 1, 2024.) - - - - - - - -…
During 2021. Wildhorse Co. borrowed cash from Sandhill Co. by issuing notes payable as follows: 1. June 1, 2021, issued an eight-month, 3% note for $72.000. Interest and principal are payable at maturity. October 1, 2021, issued a three-month, 5% note for $42,000. Interest is payable monthly on the first day of the month. Principal is payable at maturity. 2. Wildhorse Co. has a November 30 fiscal year end and prepares adjusting entries on an annual basis.
User During 2024, Teal Co. borrowed cash from Martinez Company by issuing notes payable as follows: 1. June 1, 2024, issued an eight-month, 6% note for $82,800. Interest and principal are payable at maturity. 2. October 1, 2024, issued a three-month, 6% note for $52,800. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Teal has a November 30 fiscal year end and prepares adjusting entries on an annual basis.
Question. During 2024, Royal Co. borrowed cash from another company by issuing notes payable as follows: 1. July 1, 2024, issued an 5 month, 7% note for $65,000. Interest and principal are payable at maturity. 2. November 1, 2024, issued a 3 month, 5% note for $40,200. Interest is payable monthly on the first day of the month. Principal is payable at maturity Royal has a December 31 fiscal year end and prepares adjusting entries on an annual basis. b) Prepare the necessary interest payment transactions for Royal in 2024 and 2025. Prepare separate adjusting entries for each note. Give an explanation for each entry and date used for a better understanding please.
On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $42,000. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 7%. $4 b. Determine the proceeds of the note, assuming the note is discounted at 7%.
On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a 30- day note with a face amount of $74,400. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 5%.
On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $64,800. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%. b. Determine the proceeds of the note, assuming the note is discounted at 9%.
THREE FLAGS Co. borrowed $100,000 from the Bull Run Bank on September 1, 2018. The note earns interest at a rate of 12% and matures in six months on February 28, 2019. THREE FLAGS is supposed to pay off BOTH principal and interests on February 28, 2019. Both THREE FLAGS Co. and Bull Run Bank prepares their financial statements on December 31. Please provide Journal entries for THREE FLAGS Co. on the following dates: 9/1/2018 12/31/2018 2/28/2019 Please provide Journal entries for Bull Run Bank on the following dates: 9/1/2018 12/31/2018 2/28/2019