Record the adjusting entry for recording the interest due on a note payable liability. Assume that the company has a $2400 note payable outstanding on which they pay a 5% annual interest rate. Record the adjustment for interest due for one month's worth of interest. Account Title Debit Credit Select Select
Q: On November 19, Nicholson Company receives a $21,600, 60-day, 5% note from a customer as payment on…
A: Number of days between Nov 19 to Dec 31 = 42 Interest revenue = $21600 × 5% ×42/360 days = $126
Q: adjusting entry should be made
A: Interest revenue = Amount of note receivable * Rate of interest * Number of months expired/12 months…
Q: On July 1, Orcas Lab issued a $100,000, 12%, 8-month note. Interest is payable at maturity. What is…
A: (a) December 31.
Q: On November 19, Nicholson Company receives a $24,000, 60-day, 6% note from a customer as payment on…
A: Note receivable is recognized as a negotiable instrument. It represents the claim amount due on the…
Q: Indicate whether each of the following assets and liabilities typically should be classified as…
A: Current assets - Assets which are convertible into cash within a period of one year. Long-term…
Q: A company borrowed 20.000 TL from the bank signing a 9%, 3-month note on September 1. Principal and…
A: >The adjusting entries are made at the end of period to provide for correct balances for various…
Q: On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu…
A: Calculate the interest amount as follows: Interest = Face value * Interest rate*Periods
Q: On December 31, 2019, the Notes Payable account at Vanessa’s Boutique Shop had a balance of $62,800.…
A: Interest which has been accrued but which was not paid as on the balance sheet date is to recorded…
Q: On November 25 of the current year, a company borrows $8,000 cash by signing a 90-day, 5% note…
A: The accrued interest payable shall be recorded on December 31 in accordance with the accrual basis…
Q: A business issued a 90-day, 5% note for $24,000 to a creditor on account. The company uses a 360-day…
A: Total Interest = face value of notes x interest rate x no. of days/360 days = $24000*5%*90/360 =…
Q: A company purchased a certificate of deposit (a short-term investment that pays interest to the…
A:
Q: Journalize the adjusting entry for each of the following accrued expenses at the end of the current…
A: Adjusting entries recorded at the end of the period for any expense or income related to that period
Q: On September 1, 2017, Brita Hawtof Company signed a $75,000, nine month, 6 percent note payable. The…
A: Prepare journal entry the interest accrued but not paid.
Q: Wildhorse Co. borrows $68,400 on July 1 from the bank by signing a $68,400, 8%, 1-year note payable.…
A: Interest accrued on dec 31 = face value of note x rate of interest x 6/12 = $64,800 x 8% x 6/12 =…
Q: On October 1, Black Company receives a 4% interest-bearing note from Reese Company to settle a…
A:
Q: On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $20,700. What…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.
Q: A business issued a 120-day, 6% note for $9,000 to a creditor on account. The company uses a 360-day…
A: Notes payable are defined as the written promissory note or an agreement under which the borrower…
Q: Academy Grill Supply On October 1, 2019, the company received a $50,000 promissory note from a…
A: Notes receivable records the value of promissory note that a business is owed and ought to receive…
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…
Q: XYZ Company lent $9,000 at 10% interest on December 1, 2019. The amount plus all interests accrued…
A: Formula: Interest amount = Loan amount x Interest rate x Time period
Q: On December 1, Daw Co. accepts a $34,000, 45-day, 9% note from a customer. (1) Prepare the year-end…
A: Journal entry the process of recording the business transactions in the books of accounts for the…
Q: On December 1, Daw Co. accepts a $10,000, 45-day, 6% note from a customer. (1) Prepare the year-end…
A: Accrued interest = Face value of notes x rate of interest x no. of days in calendar year/ 360 days…
Q: Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account.…
A: Journal Entry is the primary entry of business transactions. Every transaction has a dual effect…
Q: Sherman Charter signed a four-month note payable in the amount of $18,000 on September 1. The note…
A: Note: Adjusting entry on September 30 will be made to record the accrued interest for the period…
Q: On December 1, Daw Co. accepts a $10,000, 45-day, 6% note from a customer. (1) Prepare the year-end…
A: Date Account Titles and Explanation Debit Credit Dec'31 Accrued Interest on Note $ 50…
Q: on november 1, 2018, Downtown Jewelers accepted a 3-month, 15% note for $6,000 in sttlement of an…
A: Accrued interest: Accrued interest is the outstanding interest expense in the accounting period, as…
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: Make the corresponding journal entries to report short-term liabilities. Make the journal entries.…
A: (Note: Entry on 6 May is seems to be repeated by mistake, I am assuming on 6 May payment is made for…
Q: On December 1, Daw Co. accepts a $10,000, 45-day, 6% note from a customer. (1) Prepare the year-end…
A: Given information is: Value of note = $10000 Period = 45 days Interest rate = 6% Interest revenue on…
Q: Maxx Company borrowed P10,000 from the bank signing a 9%, 3-month note on September 1. Principal and…
A: Adjusting entries are also known as closing entries because these are prepared at the time of…
Q: (a) Determine the due date of the note. (b) Determine the maturity value of the note. (c) Journalize…
A: Note receivable: Note receivable refers to a written promise received by the creditor from the…
Q: Harper Company lends Hewell Company $38,400 on March 1, accepting a four-month, 10% interest note.…
A: The adjustment entries are prepared at year-end to adjust the revenue and expenses of the current…
Q: Make the journal entries. Make the adjusting entries for each expense accrued at the end of the…
A: Financial transactions are recorded in the form of a journal entries.
Q: On October 1, Black Company receives a 10% interest-bearing note from Reese Company to settle a…
A: The interest revenue is the interest earned for the period on the note receivable, etc.
Q: A gift shop signs a three-month note payable on May 1/2020 of OMR 36,000 with an annual interest of…
A: Notes payable may be defined as a liability which occurs when credit sale has been done, and the…
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…
Q: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume 360…
A: Note receivable: Note receivable refers to a written promise received by the creditor from the…
Q: On June 1, Granulite Inc borrows $150,000 from the bank by signing a 2-month, 2.0% bank loan.…
A: Journal Entries - It refers to the primary books of accounts in which transactions are recorded in…
Q: On December 1, Daw Co. accepts a $28,000, 45-day, 6% note from a customer. (1) Prepare the year-end…
A: The journal keeps the record of transactions in the form of debit and credit. The assets and…
Q: On November 1, Senorita Blankets sold goods for P12,000 and accepted a six-month non-interest…
A: Present value of Notes = non-interest-bearing note x Present value factor at (5%, 1 period) = P12000…
Q: adjusting entry for interest.
A: Interest on note payable = Amount of note payable * Rate of interest * Number of months elapsed/12…
Q: On November 1, 2021, Aviation Training Corp. borrows $44,000 cash from Community Savings and Loan.…
A: Notes: Accrued Interest = $44000 x 6% x 2/12 = $440 Interest expense = $44000 x 6% x 1/12 = $220
Q: On June 1, Sunland Company borrows 108,000 from First Bank on a 6 month, $108,000, 8% note.…
A: Journal entry: It is also called as book of original entry. All financial transactions occurred in a…
Q: Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on…
A: b)
Q: (a) assuming Ringo Company makes reversing entries, prepare the reversing entry on January 1, and…
A: Journal: It refers to an account in which all the financial transactions pertaining to a business…
Q: On December 1, Daw Company accepts a $46,000, 45-day, 9% note from a customer. (1) Prepare the…
A: Solution: In case of Note receivable, Interest is accrued at the period period for the fraction of…
Q: A business issued a 45-day note for $80,000 to a creditor on account. The note was discounted at 5%.…
A:
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- Question 31 Nelsie Corporation has an outstanding 60- day 6% note receivable armounting to P 15.000 dated December 1 of the current yoar. The company is using the calendar yoar in preparing its financial statomonts. What account should be creditod and what is the amount? Interest Income, P 75 Interest Income, P 900 Oc Accrued Interest Income, P 150 Unearmed Interest Income, P150December 13 Accepted a $16,000, 45-day, 6% note in granting Miranda Lee a time extension on her past-due account receivable. December 31 Prepared an adjusting entry to record the accrued interest on the Lee note. Exercise 7-18 (Algo) Notes recelvable transactions LO C2 Complete the table to calculate the interest amounts at December 31St and use the calculated value to prepare your journal entr (Do not round your intermediate calculations. Use 360 days a year.) Complete this question by entering your answers in the tabs below. Irterest General Amounts Journal Complete the table to calculate the interest amounts at December 31st. Total Through Maturity Interest Recognized December 31 Principal Rate (%) Time Total interestChapter 08 Homework (Application) Show Me How eBook Calculator Entries for Notes Receivable 1. EX.08.01 Valley Designs issued a 90-day, 9% note for $60,000, dated April 17, to Bork Furniture Company on account. Assume 360 days in a year when 2. EX.08.02 ALGO computing the interest. 3. EX.08.03 ALGO a. Determine the due date of the note. July 16 v 4. EX.08.04 ALGO b. Determine the maturity value of the note. 5. EX.08.06 ALGO 6. EX 08.07 Feedhack 7. EX.08.20 ALGO YChec My Work The due date is the date the note is to be paid. 8. PR.08.02A BLANKSHEET Remember the interest rate is stated on an annual basis, while the term is expressed as days. Assume a 360 day year. The maturity value is the amount that must be paid at the due date of the note. c1. 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 v Accounts Receivable-Valley Designs v Feedback
- Use information from EA10. Compute the interest expense due when Barkers honors the note. Show the journal entry to recognize payment of the short-term note on December 4.Saved Exercise 9-4 Interest-bearlng notes payable with year-end adjustments LO P1 Keesha Co. borrows $235,000 cash on November 1 of the current year by signing a 90-day, 11%, $235,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Req 4 What is the amount of interest expense in the current year and the following year from this note? (Use 360 days a year. Round final answers to the nearest whole dollar.) es Interest Total through maturity Interest Expense Current Year Expense Following Year Principal Rate (%) Time Total interestQuestion Content Area On October 1, Black Company receives a 4% interest-bearing note from Reese Company to settle a $17,400 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a. $174 b. $181 c. $171 d. $184
- Journal entry worksheetORION Proficienc End of C Homewor Watch & Interact Solution Walkthro Applied Exce Vi Resource Classeos Addition Crosve Elashcar NOTE DATED 11/24/2021 DUE IN 156 DAYS, FACE OF THE NOTE IS $ 75,000, INTEREST RATE IS 9 4% CALCULATE THE FOLLOWING COURSE Chcte THE DUE DATE THE INTEREST AMOUNT (PXRXT) MATURITY VALUE (face amount plus the interest amount) I PRACTI CH0 CH.CR + 94% PAGE 2 OF 2 192 WORDS . eeezto.mi Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.). (Use 13% for table lookup.). (Use the loan amortization table) (Round your answers to the nearest cent.) Number of Total of monthly payments $5,849.76 Total finance monthly payments Amount Purchase price of a used car $5,793 Down charge $1,339.76 financed APR payment $1, 283 48 $4,510 13% Monthly Payment es By table By formula
- Year 1 General Journal tab - Prepare the Year 2 journal entries related to the notes and accounts receivable of Clark Co. Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries. Verify that total interest revenue agrees with the trial balance. Dec. 16 Accepted a $14,400, 60-day, 8% note in granting Hao Lee a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Lee note. Year 2 Feb. 14 Received Lee’s payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $9,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Taylor Co. 17 Accepted a $4,200, 30-day, 10% note in granting Susan Allen a time extension on her past-due account receivable. Apr. 16 Allen dishonored her note. May 31 Taylor Co. dishonored its note. Aug. 7…NOTE DATED 11/24/2021 DUE IN 156 DAYS, FACE OF THE NOTE IS $ 75,000, INTEREST RATE IS 9 %% CALCULATE THE FOLLOWING THE DUE DATE THE INTEREST AMOUNT (PXRXT) MATURITY VALUE (face amount plus the interest amount) Prepare the journal entry for the following dates 1. 11/24/2021 2. The adjusting journal entry made on 12/31/2021 3. On the due date PAGE 2.OF 2 215 WORDS "Problem 9-5A (Algo) Analyzing and journalizing notes receivable transactions LO C2, C3, P4 The following transactions are from Ohlm Company. Note: Use 360 days a year. Year 1 December 16 Accepted a(n) $12,100, 60-day, 8% note in granting Danny Todd a time extension on his past-due account receivable. December 31 Made an adjusting entry to record the accrued interest on the Todd note. Year 2 February 14 Received Todd's payment of principal and interest on the note dated December 16. March 2 Accepted a(n) $6,300, 8 %, 90-day note in granting a time extension on the past-due account receivable from Midnight Company. March 17 Accepted a $3,600, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable. April 16 Privet dishonored her note. May 31 Midnight Company dishonored its note. August 7 Accepted a(n) $8,150, 90-day, 11% note in granting a time extension on the past-due account receivable of Mulan Company. September 3 Accepted a $3,970, 60-day, 10% note…