Question

On July 1, 2016, Goode Company borrowed $220,000. The company signed a note payable with interest...

On July 1, 2016, Goode Company borrowed $220,000. The company signed a note payable with interest at 5 percent per year. The note and interest are due on December 31, 2016. On December 31, 2016, Goode paid $225,500 to settle the debt in full. Assuming no accruals for interest have been made during the year, transaction analysis of the $225,500 cash payment on December 31, 2016 should reflect which of the following?

A)A decrease in assets of $225,500 and a decrease in liabilities of $225,500.

B)A decrease in stockholders' equity of $220,000, a decrease in liabilities of $5,500, and a decrease in assets of $225,500.

C)A decrease in assets of $220,000, a decrease in stockholders' equity of $5,500, and a decrease in liabilities of $225,500.

D)A decrease in liabilities of $220,000, a decrease in stockholders' equity of $5,500 and a decrease in assets of $225,500.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
3. Greener Pastures Corporation borrowed $2,000,000 on November 1, 2018. The note carried a 12 percent...
3. Greener Pastures Corporation borrowed $2,000,000 on November 1, 2018. The note carried a 12 percent interest rate with the principal and interest payable on June 1, 2019. (a) The note issued on November 1. (b) The interest accrual on December 31. Indicate the effects of the amounts for the above transactions. (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign. Do not round intermediate calculations.) 5. Barton Chocolates used a promissory note to borrow $1,850,000...
On October 1, 2019, Omicron Company borrowed $32,000 cash and signed a 9-month, 10% interest-bearing note...
On October 1, 2019, Omicron Company borrowed $32,000 cash and signed a 9-month, 10% interest-bearing note payable with interest payable at maturity. What amount of accrued interest payable should Omicron report on its December 31, 2019 balance sheet? Multiple Choice $800. $1,200. $400. $1,600. Zero. No accrued interest payable should be reported on December 31, 2019.
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...
6) On October 1, 2021, a company signed a $100,000, 6%, six-month note payable with the...
6) On October 1, 2021, a company signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on April 1, 2022. The company should report interest payable at December 31, 2021, in the amount of: A) $500. B) $1,000. C) $1,500. D) $2,000.
On January 1, Year 1, Company borrowed $543,255 on a 6-year, 5.5% installment note payable. The...
On January 1, Year 1, Company borrowed $543,255 on a 6-year, 5.5% installment note payable. The terms of the note require Company to pay 6 equal payments each December 31 for 6 years. The Notes Payable balance at the end of December 31 Year 4 is: The Cash balance at the end of December 31 Year 3 is:
The Platte Corporation issues a 5-year note payable on January 1, 2016 for $5,000. The interest...
The Platte Corporation issues a 5-year note payable on January 1, 2016 for $5,000. The interest rate is 5% and the annual payment of $1,156, due each December 31, includes both interest and principal. Which of the following shows the effect of the December 31, 2016 payment? Assets = Liab + Equity Revenue - Expense = Net Inc Cash Flow A. (1,156) = (1,156) + NA NA - NA = NA (1,156)FA B. (1,156) = (906) + (250) NA -...
On September 1, 2016 Green Industry borrowed $24,000,000 cash at 9%. The term of the note...
On September 1, 2016 Green Industry borrowed $24,000,000 cash at 9%. The term of the note is one year (matures on September 1, 2017) and all interest is payable at maturity. Green Industry's fiscal period is the calendar year. Required: A. Prepare the journal entry for the issuance of the note. B. Prepare the appropriate adjusting entry for the note on December 31, 2016. C. Prepare the journal entry for the payment of the note at maturity.
On September 1, 2015, George Hanby borrowed $300,000 from The Actors Credit Union and signed a...
On September 1, 2015, George Hanby borrowed $300,000 from The Actors Credit Union and signed a 6%, one-year note payable, all due at maturity. The interest on this loan is stated separately. The amount Hanby must pay on September 1, 2016 when the note matures is The interest expense Hanby will recognize on this note in 2016 is At December 31, 2015, George Hanby´s overall liability for this loan amounts to Make a Journal provided, give the adjusting entry made...
Luther Company borrowed money by issuing $2,500,000 of 4​% bonds payable at 101.8 on July​ 1,...
Luther Company borrowed money by issuing $2,500,000 of 4​% bonds payable at 101.8 on July​ 1, 2018. The bonds are​ five-year bonds and pay interest each January 1 and July 1. 1. How much cash did Luther receive when it issued the bonds​ payable? Journalize this transaction. 2. How much must Luther pay back at​ maturity? When is the maturity​ date? 3. How much cash interest will Luther pay each six​ months? 4. How much interest expense will Luther report...
on january 1 year 1 kase borrowed 476,259 on a 5 year 7.3% installment note payable....
on january 1 year 1 kase borrowed 476,259 on a 5 year 7.3% installment note payable. the terms of the note require kase to pay 5 equal payments each december 31 for 5 years. 1.the notes payable balance at the end of december 31 year 3 is a. 124,990 b.210,823 c.242,080 d.109,124 2. the cumulative interest expense through the end of July 31 year 3 is a. 22,309 b.101,223 c.63,524 d.85,833 3.the cash balance at the end of December 31...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT