Homework Answers
1.
a) Due date of the note = 30+30+30 = September 30, 2016
b) Assuming 360 day a year:
Interest on the loan = 73,000 *8% * 90/360 = 1460
Maturity value = 73000 +1460 = 74460
c) Annual depreciation expense = Purchase value - Salvage value / No of years = (73000 - 6500) / 7 = 9500
d) Book value of the truck = 73000 - (9500*5) = 25500
e) Loss on sale = 25500 - 25000 = 500
2.
| Net Income | Assets | Liab. | Owners Equity | Cash flows | ||
| (f) | Acquiring the truck by issuing a note | 0 | + | + | 0 | 0 |
| (g) | Paying the note plus interest on due date | - | - | - | - | - |
| (h) | Recording annual depreciation on the truck | - | - | 0 | - | 0 |
| (i) | Selling the truck for cash | - | 0 | 0 | - | + |
Add Answer to:
19 points) A company acquired a truck by issuing a 90-day, 8% note payable for $73,000...
On May 16, 2016, Reliable Company received a 90-day, 8 percent, $6,600 interest-bearing note from White...
On May 16, 2016, Reliable Company received a 90-day, 8 percent, $6,600 interest-bearing note from White Company in settlement of White's past-due account. On June 30, Reliable discounted this note at Fargo Bank and Trust. The bank charged a discount rate of 13 percent. On August 15, Reliable received a notice that White had paid the note and the interest on the due date. Prepare the entries in general journal form to record these transactions. (Use 360 days a year....
Apr. 8 Issued a $8,800, 75-day, 8% note payable in payment of an account with Bennett Company May 15 Borrowed $...
Apr. 8 Issued a $8,800, 75-day, 8% note payable in payment of an account with Bennett Company May 15 Borrowed $40,000, 60-day, 9% note from Lincoln Bank. Jun. 22 Paid Bennett Company the principal and interest due on the April 8 note payable. Jul. 6 Purchased $16,000 of merchandise from Bolton Company, signed an Jul 14 Paid the May 15 note due Lincoln Bank Oct. 2 Borrowed $28,000, 120-day, 12% note from Lincoln Bank. Oct. 4 Defaulted on the note...
Chapter 8 Practice Problems Problem #11 - Notes Receivable ABC Company had a 90-day, 4.5% note...
Chapter 8 Practice Problems Problem #11 - Notes Receivable ABC Company had a 90-day, 4.5% note for $600,000, dated January 10 from a customer on account. 1) Determine the maturity date for the note. 2) Determine the maturity value of the note. 3) Prepare journal entries for the receipt of the note on January 10, and the receipt of the cash on the maturity date of the note. Problem #12 - Notes Receivable ABC Company had a 180-day, 5% note...
The following selected transactions are from Springer Company. 2014 Accepted a $4,800, 90-day, 8% note dated...
The following selected transactions are from Springer Company. 2014 Accepted a $4,800, 90-day, 8% note dated this day in granting Steve Julian a time extension on his past-due account receivable. Nov. 1 Dec. 31 Made an adjusting entry to record the accrued interest on the Julian note. 2015 Jan. Feb. 30 Received Julian's payment for principal and interest on the note dated November 1. 28 Accepted a $12,600, 30-day, 8% note dated this day in granting a time extension on...
Smith Company borrows cash by issuing a bond payable with the following terms: $8,000,000, 8%...
Smith Company borrows cash by issuing a bond payable with the following terms: $8,000,000, 8% bond Issued on 1/1/21 Matures in 12 years Semi-annual interest payments on 6/30 and 12/31 of each year Market rate for bonds of this type was 7% at the time of their issue Required a. Compute the cash proceeds from the issuance of the bond. b. Create an effective interest amortization table in Excel for the entire life of the...
Apr. 8 Issued a $5.000. 60-day, six percent note payable in payment of an account with...
Apr. 8 Issued a $5.000. 60-day, six percent note payable in payment of an account with Bennett Company May 15 Borrowed $40.000 from Lincoln Bank, signing a 60-day note at nine percent. Jun. 7 Pald Bennett Company the principal and interest due on the April 8 note payable. Jul. 6 Purchased $12,000 of merchandise from Bolton Company: signed a 90-day note with ten percent interest. Jul. 14 Paid the May 15 note due Lincoln Bank. Oct. 2 Borrowed $30,000 from...
1. The note payable was issued on June 1 to purchase the equipment.The note is due...
1.
The note payable was issued on June 1 to purchase the equipment.The
note is due in two years, on june 1, 2023, and carries interest at
the rate of 6%.The principal is due at maturity and the interest is
payable at the beginning of each month
The trial balance before adjustment of Heis Delivery Services at the end of its first month of operations follows: Heis Delivery Services Trial Balance June 30, 2021 Debit Credit Cash $4,200 Prepaid Insurance...
On January 2, 2020, Brook Company acquired machinery by issuing a 5%, $350,000 note due in...
On January 2, 2020, Brook Company acquired machinery by issuing a 5%, $350,000 note due in 5 years on December 31, 2024. Annual payments are $81,099 each December 31. The payment schedule is: Year 2020 2021 2022 2023 2024 Annual Payment $81,999 81,099 81,099 81,099 81,099 Principal Portion of payment $63,599 66,779 70,118 73,624 75,880 Interest Portion of Payment $17,500 14,320 18,981 7,475 5,219 Principal Balance at Year-End $286,401 219,622 149,504 75,880 Required: Using the information provided, complete the following...
Valley Designs issued a 90-day, 6 note for $36,000, dated April 19, to Bark Furniture Company on account.
Entries for Notes Receivable Valley Designs issued a 90-day, 6 note for $36,000, dated April 19, to Bark Furniture Company on account. Assume 360 days in a year when computing the interest. a. Determine the due date of the note b. Determine the maturity value of the note.c1. Journalize the entry to record the receipt of the note by Bork Furniture. If an amount box does not require an entry, leave it blank.c2. Souralire the entry to record the receipt of payment of...
On August 1, Batson Company issued a 60 day note with a face amount of $55,200...
On August 1, Batson Company issued a 60 day note with a face amount of $55,200 to Jergens Company for merchandise inventory. (Assume a 360-day yea used for interest calculations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 12 b. Determine the proceeds of the note assuming the note is discounted at 12 Previous Next > Email mestructor Save and e 9 A OAM June 1, Davis Inc. issued an 4.200,10%, 120-day not...
Apr. 8 Issued a $8,800, 75-day, 8% note payable in payment of an account with Bennett Company May 15 Borrowed $40,000, 60-day, 9% note from Lincoln Bank. Jun. 22 Paid Bennett Company the principal and interest due on the April 8 note payable. Jul. 6 Purchased $16,000 of merchandise from Bolton Company, signed an Jul 14 Paid the May 15 note due Lincoln Bank Oct. 2 Borrowed $28,000, 120-day, 12% note from Lincoln Bank. Oct. 4 Defaulted on the note...
Chapter 8 Practice Problems Problem #11 - Notes Receivable ABC Company had a 90-day, 4.5% note for $600,000, dated January 10 from a customer on account. 1) Determine the maturity date for the note. 2) Determine the maturity value of the note. 3) Prepare journal entries for the receipt of the note on January 10, and the receipt of the cash on the maturity date of the note. Problem #12 - Notes Receivable ABC Company had a 180-day, 5% note...
The following selected transactions are from Springer Company. 2014 Accepted a $4,800, 90-day, 8% note dated this day in granting Steve Julian a time extension on his past-due account receivable. Nov. 1 Dec. 31 Made an adjusting entry to record the accrued interest on the Julian note. 2015 Jan. Feb. 30 Received Julian's payment for principal and interest on the note dated November 1. 28 Accepted a $12,600, 30-day, 8% note dated this day in granting a time extension on...
Apr. 8 Issued a $5.000. 60-day, six percent note payable in payment of an account with Bennett Company May 15 Borrowed $40.000 from Lincoln Bank, signing a 60-day note at nine percent. Jun. 7 Pald Bennett Company the principal and interest due on the April 8 note payable. Jul. 6 Purchased $12,000 of merchandise from Bolton Company: signed a 90-day note with ten percent interest. Jul. 14 Paid the May 15 note due Lincoln Bank. Oct. 2 Borrowed $30,000 from...
1.
The note payable was issued on June 1 to purchase the equipment.The
note is due in two years, on june 1, 2023, and carries interest at
the rate of 6%.The principal is due at maturity and the interest is
payable at the beginning of each month
The trial balance before adjustment of Heis Delivery Services at the end of its first month of operations follows: Heis Delivery Services Trial Balance June 30, 2021 Debit Credit Cash $4,200 Prepaid Insurance...
On January 2, 2020, Brook Company acquired machinery by issuing a 5%, $350,000 note due in 5 years on December 31, 2024. Annual payments are $81,099 each December 31. The payment schedule is: Year 2020 2021 2022 2023 2024 Annual Payment $81,999 81,099 81,099 81,099 81,099 Principal Portion of payment $63,599 66,779 70,118 73,624 75,880 Interest Portion of Payment $17,500 14,320 18,981 7,475 5,219 Principal Balance at Year-End $286,401 219,622 149,504 75,880 Required: Using the information provided, complete the following...
On August 1, Batson Company issued a 60 day note with a face amount of $55,200 to Jergens Company for merchandise inventory. (Assume a 360-day yea used for interest calculations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 12 b. Determine the proceeds of the note assuming the note is discounted at 12 Previous Next > Email mestructor Save and e 9 A OAM June 1, Davis Inc. issued an 4.200,10%, 120-day not...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago