On June 1, 2019, ABC Company signed a $25,000, 120-day, 6%
note payable to cover a...
On June 1, 2019, ABC Company signed a $25,000, 120-day, 6%
note payable to cover a past due account payable.
a. What is the total amount of interest to be paid on this
note?
b. Prepare ABC Company's general journal entry to record the
issuance of the note payable
c. Prepare ABC Company's general journal entry to record the
payment of the note on
September 29, 2019 (2.5 marks).
What are the characteristics of corporations (2.5 mark).
On July 31,...
1. ABC Company signed a $600,000, 12% note payable on January 1,
2014. The note is...
1. ABC Company signed a $600,000, 12% note payable on January 1,
2014. The note is due January 1, 2020, with interest payable each
July 1 and January 1. The note was issued at face value. Prepare
Lucas Co’s journal entries for (a) the January note proceeds, (b)
the July 1 interest payment, and (c) the December 31 adjusting
entry.
1/1/2014
7/1/2014
12/31/2014
2. Sims Company issued $850,000 of 10% bonds on January 1, 2014.
The bonds are due January...
On November 7, 2017, Mura Company borrows $280,000 cash by
signing a 90-day, 10% note payable...
On November 7, 2017, Mura Company borrows $280,000 cash by
signing a 90-day, 10% note payable with a face value of $280,000.
(Use 360 days a year. Do not round your intermediate
calculations.)
1. Compute the accrued interest payable on
December 31, 2017.
2. & 3. Prepare the journal entry to record
the accrued interest expense at December 31, 2017 and payment of
the note at maturity.
On November 1, Alan Company signed a 120-day, 9% note payable,
with a face value of...
On November 1, Alan Company signed a 120-day, 9% note payable,
with a face value of $36,000. Alan made the appropriate year-end
accrual. What is the journal entry as of March 1 to record the
payment of the note assuming no reversing entry was made?
(Use 360 days a year.)
Multiple Choice
Debit Notes Payable $36,000; debit Interest Expense $1,080;
credit Cash $37,080.
Debit Notes Payable $36,000; debit Interest Payable $540; debit
Interest Expense $540; credit Cash $37,080.
Debit Notes...
Q1: On March 1, 2019 a company borrows $50,000 by signing a
note. The note has...
Q1: On March 1, 2019 a company borrows $50,000 by signing a
note. The note has a 6% annual interest rate and matures on
December 31, 2019. Interest and principal are paid in cash on the
maturity date. What amount of interest expense would the company
report in 2019?
Q2: On March 1, 2019 a company borrows $50,000 by signing a
note. The note has a 6% annual interest rate and matures on
December 31, 2019. Interest and principal are...
1) Discount Co signed a 12-year note payable on January 1,
2018, of $ 780000. The...
1) Discount Co signed a 12-year note payable on January 1,
2018, of $ 780000. The note requires annual principal payments
each December 31 of $ 65000 plus interest at 8%. The entry to
record the annual payment on December 31, 2020, includes
A. a debit to Interest Expense for $52,000.
B. a debit to Interest Expense for $62,400.
C. a credit to Cash of $127,400.
D.a credit to Notes Payable for $65,000.
2) Eva Company purchased a building with...
On December 31, 2019, Coronado Inc. borrowed $4,260,000 at 12%
payable annually to finance the construction...
On December 31, 2019, Coronado Inc. borrowed $4,260,000 at 12%
payable annually to finance the construction of a new building. In
2020, the company made the following expenditures related to this
building: March 1, $511,200; June 1, $852,000; July 1, $2,130,000;
December 1, $2,130,000. The building was completed in February
2021. Additional information is provided as follows.
1.
Other debt outstanding
10-year, 13% bond, December 31, 2013, interest payable
annually
$5,680,000
6-year, 10% note, dated December 31, 2017, interest payable...
On November 16, 2020, Source for Sports gave Kinsmen Sports a
90-day, 12%, $120,000 note payable...
On November 16, 2020, Source for Sports gave Kinsmen Sports a
90-day, 12%, $120,000 note payable to extend a past due account
payable. Prepare the journal entry for Source for Sports to record
the note and the extension of the past due
account.
On January 1, 2021, Jones Company signed a $10,000 note payable
due in 4 annual installments...
On January 1, 2021, Jones Company signed a $10,000 note payable
due in 4 annual installments of $2,500 plus 5% interest. Interest
expense for the second year of the note will be:
a) 188
b)250
c)500
d)375
On December 31, 2019, Ayayai Inc. borrowed $3,720,000 at 13%
payable annually to finance the construction...
On December 31, 2019, Ayayai Inc. borrowed $3,720,000 at 13%
payable annually to finance the construction of a new building. In
2020, the company made the following expenditures related to this
building: March 1, $446,400; June 1, $744,000; July 1, $1,860,000;
December 1, $1,860,000. The building was completed in February
2021. Additional information is provided as follows. 1. Other debt
outstanding 10-year, 14% bond, December 31, 2013, interest payable
annually $4,960,000 6-year, 11% note, dated December 31, 2017,
interest payable...