On March 31, 2018, Dučóté Bödy Shop was införmed that a 1,000 hote that he was noloaing will be The note had accrued $140 in interest. 4. On December 31, 2019, Don accepted a note receivable from Mike's Builders for $1,000 as a good faith promise to pay for electrical engineering services rendered that week. The terms of the note are: Face $1,000, Interest 7%, Due in 180 Days. Prepare Don's journal entry for December 31, 2019. 5. Same facts as above. Prepare the journal entry for Don on March 31, 2020 (quarterly) pertaining to the note.

On March 31, 2018, Dučóté Bödy Shop was införmed that a 1,000 hote that he was noloaing will be The note had accrued $140 in interest. 4. On December 31, 2019, Don accepted a note receivable from Mike's Builders for $1,000 as a good faith promise to pay for electrical engineering services rendered that week. The terms of the note are: Face $1,000, Interest 7%, Due in 180 Days. Prepare Don's journal entry for December 31, 2019. 5. Same facts as above. Prepare the journal entry for Don on March 31, 2020 (quarterly) pertaining to the note.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On December 31, 2019, Don accepted a note receivable from Mike’s Builders for $1,000 as a good faith promise to pay for electrical engineering services rendered that week. The terms of the note are: Face $1,000, Interest 7%, Due in 180 Days. Prepare the journal entry for Don on March 31, 2020 (quarterly) pertaining to the note. Pay close attention to what I am asking for.
4. On December 31, 2019, Don accepted a note receivable from Mike's Builders for $1,000 as a good faith promise to pay for electrical engineering services rendered that week. The terms of the note are Face $1,000, Interest 7%, Due in 180 Days. Prepare Don's joumal entry for December 31, 2019. Debit $1,000 Credit Notes Receivable Accounts Receivable $1,000 (1,000 x 7% x 180/360) The total interest on the note Equals the face value of the note times the rate of interest times the number of days divided by 360. 5. Same facts as above. Prepare the jounal entry for Don on March 31, 2020 (quarterly) pertaining to the note. Rates) OFocus MacBook Air 80 DII DD F3 F4 F5 F6 F7 F8 F9 & * 4 7 く6
Ms. Rose sold to Ms. Jasmine OMR 80,000 worth of goods on the 15th of April 2021 by accepting a 120 days,9% interest bearing note. Both Ms. Rose & Ms. Jasmine need your help in understanding how and in what way the notes receivable and the payables should be treated. Provide them with the required help by showing how the transactions would be treated in the books of both parties in the following situations. a) When the notes are accepted. b) On the maturity date, the note is honored. c) Suppose Ms. Rose prepared final accounts on the 10th of May 2021. d) Following the above situation, the bill is met on maturity. e) The note was dishonored on the maturity date by Ms. Jasmine.
Marydale Products permits its customers to defer payment by giving personal notes instead of cash. All the notes bear interest and require the customer to pay the entire note in a single payment 6 months after issuance. Consider the following transactions, which describe Marydale's experience with two such notes: a. On October 31, 2019, Marydale accepts a 6-month, 10% note from Customer A in lieu of a $4,200 cash payment for services provided that day. b. On February 28, 2020, Marydale accepts a 6-month, $1,800, 7% note from Customer B in lieu of a $1,800 cash payment for services provided on that day. c. On April 30, 2020, Customer A pays the entire note plus interest in cash. d. On August 31, 2020, Customer B pays the entire note plus interest in cash. Required: Prepare the necessary journal and adjusting entries required to record Transactions a through d in Marydale's records.
On October 1, 2022, Harlan received a $15,000, six-month, 10% note in exchange for goods sold to McBride Company. Prepare the journal entry to record the receipt of the note on October 1, 2022. Prepare the adjusting entry to record the accrued interest on the note at December 31, 2022. Write a wriiten explanation on what would Harlan do if McBride dishonors its note, but Harlan still expects to eventually collect it?
March 30 Loaned an officer of the company $30,000 and received a note requiring principal and interest at 8% to be paid on March 30, 2025. May 30 Discounted the $30,000 note at a local bank. The bank’s discount rate is 9%. The note was discounted without recourse and the sale criteria are met. Record the accrued interest revenue on the discounted note.
On October 1, 2021, Oberley Corporation loans one of its employees $40,000 and accepts a 12-month, 9% note receivable. Calculate the amount of interest revenue Oberley will recognize in 2021 and 2022.
On March 1, 2021, X Co. assigns $60,000 of its accounts receivable as a collateral for a loan from John Finance Company. X signed a Note Payable to John for $50,0003; John then takes a fee of 5% of the accounts receivable. John also charges 12% interest on the amount of cash X received. If X collects $10,000 in March and remits this amount plus interest owed to John on March 31st, the journal entry X records on March 31st will include: Credit to Cash of $10,470 Debit to Interest Expense of $5,640 Credit to Cash of $10,000 Credit to Cash of $40,000
On October 1, 2024, Green Corporation loans one of its employees $26,000 and accepts a 12-month, 8% note receivable. Calculate the amount of interest revenue Green will recognize in 2024 and 2025.
On August 31, 2018, BetsyTotten borrowed $1,000 from Iowa State Bank. Totten signed a note payable, promising to paythe bank principal plus interest on August 31, 2019. The interest rate on the note is 6%. Theaccounting year of Iowa State Bank ends on June 30, 2019. Journalize Iowa State Bank’s (a)lending money on the note receivable at August 31, 2018, (b) accrual of interest at June 30, 2019,and (c) collection of principal and interest at August 31, 2019, the maturity date of the note.
Mr. X lends $20,000 to Mr. Y on May 6, 2021. A promissory note is written by Mr. Y at a simple interest rate of 9%, with a due date of October 6, 2021. The maturity value of the note is $20,769.32. The note was sold by Mr. X on June 26, 2021 to Mr. C who discounts the note at a simple discount rate of 8%. What price does Mr. A receive for the note? $20,291.34 O $20,305.00 O $20,302.09 $20,315.15
On October 1, 2024, Oberley Corporation loans one of its employees $44,000 and accepts a 12-month, 7% note receivable. Required:Determine the financial statement effects of (a) lending $44,000 cash to an employee, (b) interest on the note as of December 31, 2024, and (c) collecting cash for the note and interest on October 1, 2025.