Morton Company had the following select transactions. 1, 2021 Accepted Remington Company's 1-year, 12% note in settlement of a $25,000 account receivable. Apr. July 1, 2021 Loaned $15,000 cash to Jenny Green on a 9-month, 10 % note. Dec. 31, 2021 Accrued interest on all notes receivable. Apr. 1, 2022 Received principal plus interest on the Remington note. Apr. 1, 2022 Jenny Green dishonored its note: Morton expects it will eventually collect.

Morton Company had the following select transactions. 1, 2021 Accepted Remington Company's 1-year, 12% note in settlement of a $25,000 account receivable. Apr. July 1, 2021 Loaned $15,000 cash to Jenny Green on a 9-month, 10 % note. Dec. 31, 2021 Accrued interest on all notes receivable. Apr. 1, 2022 Received principal plus interest on the Remington note. Apr. 1, 2022 Jenny Green dishonored its note: Morton expects it will eventually collect.

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%...

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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 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. 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.
Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1, 2018, Banks Hardware issues a note with a principal amount of $480,000, 13% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Banks Hardware Store for the following transactions. A. Note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019.
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?
Notes Receivable Transactions The following notes receivable transactions occurred for Harris Company during the last three months of the current year. (Assume all notes are dated the day the transaction occurred.) Required: 1. Prepare the journal entries to record the preceding note transactions and the necessary adjusting entries on December 31. (Assume that Harris does not normally sell its notes and uses a 360-day year for the purpose of computing interest. Round all calculations to the nearest penny.) 2. Show how Harris notes receivable would be disclosed on the December 31 balance sheet. (Assume these are the only note transactions encountered by Harris during the year.)
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
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Swifty Company had the following select transactions. Аpr. 1. 2020 Accepted Goodwin Company's 12-month, 14% note in settlement of a $63,000 account receivable. July 1. 2020 Loaned $65,000 cash to Thomas Slocombe on a 9-month, 12% note. Dec. 31. 2020 Accrued interest on all notes receivable. Apr. 1. 2021 Received principal plus interest on the Goodwin note. Аpr. 1. 2021 Thomas Slocombe dishonored its note; Swifty expects it will eventually collect. Prepare journal entries to record the transactions. Swifty prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record interest at 14%) (To record interest at 12%) (To record principal plus interest on the Goodwin note)
Below are the transactions related to notes receivable activity for Barton Corporation. Record each transaction in the journal provided. Enter the date of the last transaction. 2020 13-Nov Accepted a $40,000, 90-day, 6% note from a customer in exchange for their past due accounts receivable balance 31-Dec Made an entry to accrue the accrued interest earned on the Nov 13 note 2021 11-Feb Received payment for the principal and interest on the note dated November 13 22-Apr Accepted a $20,000, 45-day, 5% note from a customer in exchange for consulting fees provided ??? Received payment for the principal and interest on the note dated April 22…
Sheffield Company had the following select transactions. Apr. 1, 2020 Accepted Goodwin Company’s 12-month, 14% note in settlement of a $29,000 account receivable. July 1, 2020 Loaned $31,000 cash to Thomas Slocombe on a 9-month, 12% note. Dec. 31, 2020 Accrued interest on all notes receivable. Apr. 1, 2021 Received principal plus interest on the Goodwin note. Apr. 1, 2021 Thomas Slocombe dishonored its note; Sheffield expects it will eventually collect.
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