Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Chapter 5, Problem 54BE
To determine
(a)
Note Receivable:
Note Receivable is a written document, which can be used for receipt of money in the future in lieu of cash payment in the present time.
The
To determine
(b)
Note Receivable:
Note Receivable is a written document, which can be used for receipt of money in the future in lieu of cash payment in the present time.
The amount of interest that kelsey will receive on December
To determine
(c)
Note Receivable:
Note Receivable is a written document, which can be used for receipt of money in the future in lieu of cash payment in the present time.
The journal entry for recording the cash received to pay off the note and interest on December
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Notes Receivable
Crowne Cleaning provides cleaning services for Amber Inc., a business with four buildings. Crowne assigned different cleaning charges for each building based on the
amount of square feet to be cleaned. The charges for the four buildings are $55,200, $49,800, $69,600, and $30,000. Amber secured this amount by signing a note
bearing 10% Interest on June 1.
Required:
1. Prepare the journal entry to record the sale on June 1. If an amount box does not require an entry, leave it blank.
188
2. Determine how much interest Crowne will receive if the note is repaid on December 1.
3. Prepare Crowne's journal entry to record the cash received to pay off the note and interest on December 1. If an amount box does not require an entry, leave it blank.
ED
Censider the following note payable transactions of Cargo Video Productions.
D(Click the icon to view the transactions.)
Requirements
1.
Journalize the transactions for the company.
Considering the given transactions only, what are Cargo Video Productions' total liabilities on December 31, 2019?
2.
X Select explanations on the last line
More Info
he note requires annual principal pa
Credit
2018
Oct. 1 Purchased equipment costing $40,000 by issuing a five-year, 9% note
payable. The note requires annual principal payments of $8,000 plus
interest each October 1.
Dec. 31 Accrued interest on the note payable.
2019
Oct. 1 Paid the first installment on the note.
Dec. 31 Accrued interest on the note payable.
Print
Done
4
On November 1, 2024, Survival Training Corporation borrows $51,000 cash from Community Savings and Loan. Survival Training signs
a three-month, 6% note payable. Interest is payable at maturity. Survival's year-end is December 31.
Required:
1. to 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
<
1
2
Record the issuance of note.
Date
3
Note: Enter debits before credits.
November 01, 2024
General Journal
Debit
Credit
Chapter 5 Solutions
Cornerstones of Financial Accounting
Ch. 5 - When is revenue recognized?Ch. 5 - When is a performance obligation satisfied?Ch. 5 - At what amount should sales revenue be recorded...Ch. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - Why is the direct write-off method not GAAP?
Ch. 5 - Prob. 11DQCh. 5 - Prob. 12DQCh. 5 - Prob. 13DQCh. 5 - How much interest will be due at maturity for each...Ch. 5 - A business borrows $1,000, signing a note that...Ch. 5 - Prob. 16DQCh. 5 - Describe what happens when receivables are...Ch. 5 - Prob. 18DQCh. 5 - Prob. 19DQCh. 5 - Prob. 20DQCh. 5 - Prob. 21DQCh. 5 - How may analyzing sales and receivables provide...Ch. 5 - Prob. 23DQCh. 5 - Prob. 1MCQCh. 5 - When is revenue from the sale of merchandise...Ch. 5 - What does the phrase, Revenue is recognized at the...Ch. 5 - Prob. 4MCQCh. 5 - Prob. 5MCQCh. 5 - Prob. 6MCQCh. 5 - Prob. 7MCQCh. 5 - All of the following are ways in which receivables...Ch. 5 - Which one of the following best describes the...Ch. 5 - If a company uses the direct write-off method of...Ch. 5 - Prob. 11MCQCh. 5 - Which of the following best describes the concept...Ch. 5 - The aging method is closely related to the a....Ch. 5 - Prob. 14MCQCh. 5 - Prob. 15MCQCh. 5 - Prob. 16MCQCh. 5 - Zenephia Corp. accepted a 9-month note receivable...Ch. 5 - Prob. 18MCQCh. 5 - Prob. 19MCQCh. 5 - ( Appendix 5A) Under the gross method, the seller...Ch. 5 - Service Revenue Kibitz Fitness received S30000...Ch. 5 - Service Revenue Softball Magazine Company received...Ch. 5 - Prob. 23CECh. 5 - Prob. 24CECh. 5 - Percentage of Credit Sales Clarissa Company has...Ch. 5 - Write-Off of Uncollectible Accounts The Rock has...Ch. 5 - Aging Method On January 1, 2019, Hungryman Inc....Ch. 5 - Aging Method On January 1, 2019, Smith Inc. has...Ch. 5 - Prob. 29CECh. 5 - Prob. 30CECh. 5 - Accounts Receivable Balance Beginning accounts...Ch. 5 - Accounts Receivable Balance Beginning accounts...Ch. 5 - Prob. 33CECh. 5 - Notes Receivable Metzler Communications designs...Ch. 5 - Notes Receivable Link Communications programs...Ch. 5 - Ratio Analysis The following information pertains...Ch. 5 - Ratio Analysis Diviney Corporations net sales and...Ch. 5 - Prob. 38CECh. 5 - Service Revenue H**R Wholesalers is a retailer...Ch. 5 - Service Revenue Melrose Milk Delivery provides...Ch. 5 - Prob. 41BECh. 5 - Prob. 42BECh. 5 - Prob. 43BECh. 5 - Write-Off of Uncollectible Accounts King...Ch. 5 - Aging Method Spotted Singer sells karaoke machines...Ch. 5 - Aging Method Ingrid Inc. has strict credit...Ch. 5 - Percentage of Credit Sales Method Ruby Red...Ch. 5 - Collection of Amounts Previously Written Off...Ch. 5 - Accounts Receivable Balance Hart Inc. began the...Ch. 5 - Accounts Receivable Balance XYZ Corp sells widgets...Ch. 5 - Accounts Receivable Balance Rays beginning and...Ch. 5 - Prob. 52BECh. 5 - Prob. 53BECh. 5 - Prob. 54BECh. 5 - Ratio Analysis Dobbys income statement lists net...Ch. 5 - Ratio Analysis Rose Corporation sells upscale...Ch. 5 - Prob. 57BECh. 5 - ( Appendix 5A) Sales Discounts Harry Gardner...Ch. 5 - ( Appendix 5A) Sales Discounts Ramsden Inc....Ch. 5 - Calculation of Revenue Wallace Motors buys and...Ch. 5 - Prob. 61ECh. 5 - Calculation of Revenue from Cash Collection...Ch. 5 - Prob. 63ECh. 5 - Sales and Sales Returns and Allowances Rubin...Ch. 5 - Average Uncollectible Account Losses and Bad Debt...Ch. 5 - Bad Debt Expense: Percentage of Credit Sales...Ch. 5 - Prob. 67ECh. 5 - Bad Debt Expense: Aging Method Glencoe Supply had...Ch. 5 - Aging Receivables and Bad Debt Expense Perkinson...Ch. 5 - Allowance for Doubtful Accounts At the beginning...Ch. 5 - Collection of Amounts Previously Written Off...Ch. 5 - Prob. 72ECh. 5 - Accounting for Notes Receivable On November 30,...Ch. 5 - Recording Notes Receivable: Issuance, Payment, and...Ch. 5 - Prob. 75ECh. 5 - Ratio Analysis The following information was taken...Ch. 5 - Ratio Analysis The following information was taken...Ch. 5 - Prob. 78ECh. 5 - Prob. 79APSACh. 5 - Prob. 80APSACh. 5 - Prob. 81APSACh. 5 - Prob. 82APSACh. 5 - Bad Debt Expense: Percentage of Credit Sales...Ch. 5 - Aging Method Bad Debt Expense Cindy Bagnal, the...Ch. 5 - Determining Bad Debt Expense Using the Aging...Ch. 5 - Accounting for Notes Receivable Yarnell...Ch. 5 - Prob. 87APSACh. 5 - Prob. 88APSACh. 5 - Prob. 79BPSBCh. 5 - Prob. 80BPSBCh. 5 - Prob. 81BPSBCh. 5 - Prob. 82BPSBCh. 5 - Prob. 83BPSBCh. 5 - Aging Method Bad Debt Expense Carol Simon, the...Ch. 5 - Determining Bad Debt Expense Using the Aging...Ch. 5 - Prob. 86BPSBCh. 5 - Prob. 87BPSBCh. 5 - Prob. 88BPSBCh. 5 - Ethics and Revenue Recognition Alan Spalding is...Ch. 5 - Prob. 89.2CCh. 5 - Prob. 89.3CCh. 5 - Prob. 90.1CCh. 5 - Prob. 90.2CCh. 5 - Prob. 90.3CCh. 5 - Prob. 91CCh. 5 - Prob. 92.1CCh. 5 - Prob. 92.2CCh. 5 - Prob. 93.1CCh. 5 - Prob. 93.2CCh. 5 - Prob. 94.1CCh. 5 - Prob. 94.2CCh. 5 - Prob. 95.1CCh. 5 - Prob. 95.2CCh. 5 - Prob. 95.3CCh. 5 - Prob. 95.4CCh. 5 - Prob. 95.5CCh. 5 - Prob. 95.6CCh. 5 - Prob. 95.7CCh. 5 - Comparative Analysis: Under Armour, Inc., versus...Ch. 5 - Prob. 96.2CCh. 5 - Prob. 96.3CCh. 5 - Prob. 96.4CCh. 5 - Prob. 96.5CCh. 5 - Prob. 96.6CCh. 5 - Prob. 97.1CCh. 5 - Prob. 97.2C
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- rowne Cleaning provides cleaning services for Amber Inc., a business with four buildings. Crowne assigned different cleaning charges for each building based on the amount of square feet to be cleaned. The charges for the four buildings are $108,000, $102,600, $122,400, and $82,800. Amber secured this amount by signing a note bearing 8% interest on June 1. Required: Question Content Area 1. Prepare the journal entry to record the sale on June 1. If an amount box does not require an entry, leave it blank. 2. Determine how much interest Crowne will receive if the note is repaid on December 1. 3. prepare Crowne’s journal entry to record the cash received to pay off the note and interest on December 1. If an amount box does not require an entry, leave it blank. DO NOT GIVE SOLUTION IN IMAGEarrow_forwardOn June 1, 2023 Stanfield Tileworks accepts a $50,000, five month, 9% note from a customer. On November 1, 2023, Stanfield receives full payment for the note including accrued interest. Please provide the journal entry that results from this paymentarrow_forwardEmperor Pool Services provides pool cleaning and maintenance services to residential clients. It offers a one-year warranty on all services. Review each of the transactions, and prepare any necessary journal entries for each situation. A. March 31: Emperor provides cleaning services for fifteen pools during the month of March at a sales price per pool of $550 cash. Emperor records warranty estimates when sales are recognized and bases warranty estimates on 2% of sales. B. April 5: A customer files a warranty claim that Emperor honors in the amount of $100 cash. C. April 13: Another customer, J. Jones, files a warranty claim that Emperor does not honor due to customer negligence. D. June 8: J. Jones files a lawsuit requesting damages related to the dishonored warranty in the amount of $1,500. Emperor determines that the lawsuit is likely to end in the plaintiffs favor and the $1,500 is a reasonable estimate for damages.arrow_forward
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