Question

teu premum was $15,000. Prepare the corporation s journal entry to record the reacquisERETUR BE14-10 (L03) Coldwell, Inc, issued a $100,000, 4-year, 10% note at face value to Flint Hills Bank on January 1, 2017 received $100,000 cash. The note requires annual interest payments each December 31. Prepare Coldwell's journal entri record (a) the issuance of the note and (b) the December 31 interest payment. BE14-11 (L03) Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January 2017, and received cash of $47,664. The implicit interest rate is 12%. Prepare Samson's journal entries for (a) the January 1180 ance and (b) the December 31 recognition of interest. in C u b Commune on lanuary 1, 2017, and

Answer 1

Solution: Q1 Credit Date Jan 1,2017 Account title Cash Note payable Debit 100000 100000 b 10000 Dec 31,2017 Interest expense Cash (100000*10%) 10000 Q2 Credit Date Jan 1,2017 Account title Cash Discount on Notes Payable Note payable Debit 47664 27336 75000 5720 Dec 31,2017 Interest expense Discount on Notes Payable (47664*12%) 5720