Question

Zelda & Associates drew a nine-month, $450000 bill receivable, with 6% interest, on Kochi Dye Fabrics...

Zelda & Associates drew a nine-month, $450000 bill receivable, with 6% interest, on Kochi Dye Fabrics on 1 September 2018. Zelda & Associates' year-end is 31 December. The amount of interest on this bill to be recognised by Zelda & Associates in 2019 is:

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution

Formula for interest:

Amount of interest= Amount of bill receivable× rate%× number of months

Where,

Amount of bills receivable $450000

Interest rate 6%

Number of months(2019) 5 months(number of months are taken as 5 since the bill is drawn on 1 September 2018 and 4 months have passed till 31 December so now only 5 months will be left for 2019)

So

Amount of interest= 450000×6%×(5/12)= $11250.

Thus amount of bill to be recognised by Zelda and associates in 2019 is $11250.

In case you need any further help please comment below.

Thank you. Please upvote it........

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Interest-Bearing Note Replacing an Unpaid Account Payable Rasputin Manufacturing owed $50,000 on account for inventory purchased...
Interest-Bearing Note Replacing an Unpaid Account Payable Rasputin Manufacturing owed $50,000 on account for inventory purchased on December 1, 2018. Rasputin uses a perpetual inventory system and the fiscal year ends on December 31. Rasputin was unable to pay the amount owed by the February 28 due date because of financial difficulties. On March 1, 2019, Rasputin signed a $50,000, 10.4% interest-bearing note. This note was repaid with interest on September 1, 2019. Required: If no entry is required, type...
On September 1, 2019, Rowen Manufacturing issued a $90,000, 6-month, 9% note payable to purchase equipment....
On September 1, 2019, Rowen Manufacturing issued a $90,000, 6-month, 9% note payable to purchase equipment. At December 31, 2019, the company records an adjusting entry to accrue interest incurred by not paid. The company pays the note with interest at the maturity date. What is the adjusting journal entry at December 31 to record the accrued interest on the note payable?
Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on...
Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31, 2019. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $4,000,000, 9% note $6,000,000, 6% bonds Construction expenditures incurred were as follows: July 1, 2018 $ 430,000 September 30, 2018 630,000 November 30, 2018 630,000 January 30, 2019 570,000 The company’s fiscal year-end is December 31. Required: Calculate...
Demello & Associates records adjusting entries on an annual basis. The company has the following information...
Demello & Associates records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended December 31, 2021: 1. Demello has a $10,800, 8% note receivable with a customer. The customer pays the interest on a monthly basis on the first of the month. Assume the customer pays the correct amount each month. 2. Demello pays its employees a total of $6,400 every second Wednesday. Employees work a...
Bill Sanders started a part-time consulting practice, Sanders Consulting Associates (SCA), on January 1, Year 1....
Bill Sanders started a part-time consulting practice, Sanders Consulting Associates (SCA), on January 1, Year 1. SCA experienced the following transactions during Year 1. It is now year-end and assume that these transactions are the only transactions the company has. Adjusting entries must be made at year-end. January 1                   Acquired $3,000 cash from issuing common stock. January 15                 Purchased $1,100 of supplies on account. February 20               Recognized $12,800 of consulting revenue for services provided on account. March...
Required information [The following information applies to the questions displayed below.] Pastina Company sells various types...
Required information [The following information applies to the questions displayed below.] Pastina Company sells various types of pasta to grocery chains as private label brands. The company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2018, appears below.     Account Title Debits Credits Cash 45,300 Accounts receivable 59,000 Supplies 1,900 Inventory 78,000 Note receivable 30,300 Interest receivable 0 Prepaid rent 2,800 Prepaid insurance 0 Office equipment 96,000 Accumulated depreciation—office equipment 36,000 Accounts payable 38,000 Salaries...
Required information [The following information applies to the questions displayed below.] Pastina Company sells various types...
Required information [The following information applies to the questions displayed below.] Pastina Company sells various types of pasta to grocery chains as private label brands. The company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2018, appears below.     Account Title Debits Credits Cash 45,300 Accounts receivable 59,000 Supplies 1,900 Inventory 78,000 Note receivable 30,300 Interest receivable 0 Prepaid rent 2,800 Prepaid insurance 0 Office equipment 96,000 Accumulated depreciation—office equipment 36,000 Accounts payable 38,000 Salaries...
Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on...
Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31, 2019. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $6,000,000, 8% note $9,000,000, 3% bonds Construction expenditures incurred were as follows: July 1, 2018 $ 580,000 September 30, 2018 870,000 November 30, 2018 870,000 January 30, 2019 810,000 The company’s fiscal year-end is December 31. Required: Calculate...
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used...
On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 $ 1,820,000 March 1, 2018 1,440,000 June 30, 2018 1,640,000 October 1, 2018 1,440,000 January 31, 2019 396,000 April 30, 2019 729,000 August 31, 2019 1,026,000 On January 1, 2018, the company obtained a $4,400,000 construction loan with a 14% interest rate....
Eli Enterprises has just completed its first full year of operations on December 31, 2018. It...
Eli Enterprises has just completed its first full year of operations on December 31, 2018. It provides accounting services to not-for-profit organizations. The unadjusted (normal) trial balance is presented below: Eli Enterprises Trail Balance – unadjusted (normal) As of December 31, 2018 Account Title Debit Credit Cash $      20,000 $               .               Accounts Receivable 50,000 Supplies           5,000 Prepaid Rent           7,200 Equipment 200,000 Notes Payable 75,000 Accounts Payable 15,000 Unearned Service Revenues 12,000 Common Stock 100,000 Retained Earnings 50,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT