On April 1, 2020, Mendoza Company (a U.S.-based company)
borrowed 508,000 euros for one year at...
On April 1, 2020, Mendoza Company (a U.S.-based company)
borrowed 508,000 euros for one year at an interest rate of 5
percent per annum. Mendoza must make its first interest payment on
the loan on October 1, 2020, and will make a second interest
payment on March 31, 2021, when the loan is repaid. Mendoza
prepares U.S. dollar financial statements and has a December 31
year-end. Prepare all journal entries related to this foreign
currency borrowing assuming the following exchange...
On 1 March 2020, Maju Teras Bhd
borrowed RM50,000 from MyBank Bhd and signed a 12%...
On 1 March 2020, Maju Teras Bhd
borrowed RM50,000 from MyBank Bhd and signed a 12% one month note
payable. MyBank Bhd charged 1% initial fee on the note. Maju Teras
Bhd assigned RM73,000 of its accounts receivable to MyBank Bhd as a
security. During March 2020, Maju Teras Bhd collected RM70,000 of
the assigned accounts receivable and RM3,000 of the sales were
returned by the customers. Maju Teras Bhd paid the principal and
interest on note payable to MyBank...
On December 31, 2019, Culver Inc. borrowed $4,320,000 at 13%
payable annually to finance the construction...
On December 31, 2019, Culver Inc. borrowed $4,320,000 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, $518,400; June 1, $864,000; July 1, $2,160,000;
December 1, $2,160,000. 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
$5,760,000
6-year, 11% note, dated December 31, 2017, interest payable...
On December 31, 2019, Sheffield Inc. borrowed $3,240,000 at 13%
payable annually to finance the construction...
On December 31, 2019, Sheffield Inc. borrowed $3,240,000 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, $388,800; June 1, $648,000; July 1, $1,620,000;
December 1, $1,620,000. 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
$4,320,000
6-year, 11% note, dated December 31, 2017, interest payable...
On December 31, 2019, Sandhill Inc. borrowed $3,060,000 at 13%
payable annually to finance the construction...
On December 31, 2019, Sandhill Inc. borrowed $3,060,000 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, $367,200; June 1, $612,000; July 1, $1,530,000;
December 1, $1,530,000. 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
$4,080,000
6-year, 11% note, dated December 31, 2017, interest payable...
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...
10-08
On December 31, 2019, Sheffield Inc. borrowed $4,200,000 at 13%
payable annually to finance the...
10-08
On December 31, 2019, Sheffield Inc. borrowed $4,200,000 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, $504,000; June 1, $840,000; July 1, $2,100,000;
December 1, $2,100,000. 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
$5,600,000
6-year, 11% note, dated December 31, 2017, interest...
Exercise 10-08
On December 31, 2019, Blue Inc. borrowed $4,260,000 at 12% payable
annually to finance...
Exercise 10-08
On December 31, 2019, Blue 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,...
Intercompany Financing Transactions
Sessions Athletic Gear borrowed $5,000,000 from its parent, PF
Consolidated Inc., at an...
Intercompany Financing Transactions
Sessions Athletic Gear borrowed $5,000,000 from its parent, PF
Consolidated Inc., at an interest rate of 5%. The loan was made on
September 30, 2019, with interest due semiannually on March 31 and
September 30 of each year, and principal due in 2023. PF’s
accounting year ends on December 31. You are doing the
consolidation working paper at December 31, 2020. The loan is still
outstanding, and Sessions has made interest payments as
required.
a. What balances...
1.Trius Inc. borrowed $2,500,000 from its bank on December 1,
2013. The term is 10 years,...
1.Trius Inc. borrowed $2,500,000 from its bank on December 1,
2013. The term is 10 years, with annual payments of $250,000 plus
interest due starting December 1, 2014. If Trius does not meet
certain loan covenants the entire amount outstanding is due on
demand. Trius was not in compliance at December 31, 2015
(year-end). After considerable negotiations, the bank agreed it
would not demand payment. The agreement was signed January 20,
2016. Trius Inc. issued its audited financial statements on...