Journal Entry for Payee when giving note* to either the maker or a bankDebit Cash, Credit Notes Receivable,Credit Interest Revenue for (cash Xinterest rate X months/12)Debit Cash, debit Notes Receivable,Credit Interest Revenue for (cash Xinterest rate X months/12)debit Notes Receivable, credit cash,Credit Interest Revenue for (cash Xinterest rate X months/12)

Notes receivable is considered a negotiable instrument. It is a written promise to receive a certain…

Answered: Journal Entry for Payee when giving…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Similar questions

If the discounting is secured borrowing, what is included in the journal entry to record the transaction? a. Debit loss on note receivable discounting Ᵽ87,000b. Debit interest expense Ᵽ87,000c. Credit liability for note discounted Ᵽ6,063,000d. Credit interest income Ᵽ63,000
A note receivable is dishonoured on the maturity date. The journal entry to record the same in the accounts is. a. Dr Cash Cr Note receivable Cr Interest receivable b. Dr Accounts receivable Cr Note receivable Cr Interest revenue c. Dr Note receivable Cr Interest revenue Cr Cash d. Dr Cash Cr Accounts receivable Cr Interest revenue
CANDY'S CLEANING SERVICES Bank Reconciliation April 30, 2020 $33,452 Book balance Bank balance $28,934 Add: Deduct: Interest $47 NSF, customer Bonne 412 Error Chq #93 99 146 $29,080 Outstanding cheques: Deduct: #879 $2,600 Service Charge 40 #100 1,400 4,412 Adjusted bank balance $29,040 Adjusted book balance $29,040 In comparing the bank reconciliation to the Cash account In the general ledger, you notice a problem. You investigate further and come up with some additional Informatlon as follows: a. The Cash account in the general ledger showed the followling: Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 March 31 Balance 28,934 ৪4,934 21,051 April 30 CR16 56,000 30 CD21 63,883 b. The error in cheque #93, for Utilitles Expense, resulted from the bank Incorrectly debiting our account for $99; the correct amount entered in the accounting records Is $199. c. The bank statement showed interest expense of $47; there was no other Interest. d. The bank debited our account…
Sundance Systems has the following transactions during July. July 5 Purchases 32 LCD televisions on account from Red River Supplies for $2,100 each, terms 3/10, n/30. July 8 Returns to Red River four televisions that had defective sound. July 13 Pays the full amount due to Red River. July 28 Sells remaining 28 televisions from July 5 for $2,600 each on account.
Match each description to the appropriate term. Clear All Measures how frequently during the year accounts Net realizable value receivable are being turned into cash Amounts owed by customers Receivables documented by a formal written instrument of credit All money claims against Notes receivable other entities The difference between Accounts receivable accounts receivable and turnover allowance for doubtful accounts
Record the repayment of the note at maturity for Eskimo joes record the receipt of cash at maturity for Stillwater national bank
Which one is the correct formula for BRS Select one: O a. Balance as per Books- Interest Income from Bank- error in cheques+ Bank Collection Fee- NSF Check D. Balance as per Books+ Interest Income from Bank+ error in cheques- Bank Collection Fee- NSF Check O b. Balance as per Books+ Interest Income from Bank- error in cheques- Bank Collection Fee- NSF Check O c. Balance as per Books+ Interest Income from Bank+ error in cheques+ Bank Collection Fee- NSF Check Clear my choice
A debit order of R1500 for payment of rates will appear in ____________during the bank reconciliation process
Emporium bank lends money to a customer on a six month note. What journal entry does the bank prepare? A. Debit note receivable and credit cash B. Debit cash and credit note receivable C: debit note receivable and credit service revenue D. Debit cash and credit note payable
Larkspur, Inc. had the following transactions involving notes payable. July 1, 2022 Borrows $54,000 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2022 Borrows $64,800 from Lyon County State Bank by signing a 3-month, 6% note. Dec. 31, 2022 Prepares annual adjusting entries. Feb. 1, 2023 Pays principal and interest to Lyon County State Bank. Apr. 1, 2023 Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
An adjusting entry is required for: Select one© a. Deposit în transit.O b. Outstanding checksO c. Bank errorsO d. Collection of a note by the bank
ah- ELearning The proper treatment of outstanding cheques Is to report them in the bank reconcilation as which of the following? o a. An addition to the balance as per cash book O b. A deduction from the balance as per bank statement O C. An addition to the balance as per bank statement o d. A deduction from the balance as per cash book A OMR 40,000, interest-bearing notes payable is signed on December 26, 2002. If the note is a 120-day note, what is the maturity date for this short term liability? of O a. April 26 O b. March 25 O c. March 26 O d. April 25 5. Oman Air purchased aeroplane for OMR 200,000, on July 1, 2015. The company expects the service life of the airplane to be 5 years. During that time, it is expected that the aeroplane's useful life will be 40,000 hours. The anticipated salvage value is OMR 10,000. The aeroplane is disposed of after five years of use. Calculate the book value of aeroplane as on 31-12-2017? Use declining-balance depreciation method of charging…

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