4. In the books of Filipinas Bank...
Q: On August 31, 20X6, Kathy Thompson borrowed 53.000 from Danein Interstate Bank. Thompson signed a…
A: Note receivable means where bank has given loan to borrower with specified term regarding time of…
Q: On Nov 24, 20X1, ABC Company borrowed P750,000, 45-day loan from a bank and pledged its receivables…
A: Note Payable: Notes payable are a kind of long-term liability that show the money that a firm owes…
Q: The business borrowed a 3-year 10% long term loan for TL 15.000 on October 1, 2014. The business…
A: From the given info it seemse that TL 15000 will be repaid into…
Q: Keesha Co. borrows $200,000 cash on November 1 of the current year by signing a 90-day, 9%, $200,000…
A: Note payable is issued to creditors for the money borrowed. It includes the terms for the interest,…
Q: On May 1, Year 1, Benz's Sandwich Shop loaned $10,000 to Mark Henry for one year at 6 percent…
A: Workings. a) Given, Loan Amount=$10000,Interest Rate=6%,Time=8 months(i.e. from May to December)…
Q: At year end, Rei company issued a P2,000,000 face amount note payable in exchange for services…
A: Price of the bonds = Present value of principal + Present value of interest payments
Q: rate was 11%. The first payment for interest and principal was made on September 1, Year 2. At…
A: The obligations require the company to pay interest within one year or operating cycle. Accrued…
Q: The Continental Bank made a loan of $26,000.00 on March 26 to Dr. Hirsch to purchase equipment for…
A:
Q: On January 26, Bella Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount…
A: A promissory note can be described as a legal document that documents a loan between the lender and…
Q: On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 6 percent…
A: The interest amount is obtained when the loan amount is multiplied by the interest rate. Interest…
Q: On November 1, Lee Corporation borrowed 10,000 by signing a six-month 5% bank loan payable. On this…
A: When a loan is borrowed which is a liability, Loan Payable A/c will be credited by the amount of the…
Q: During the year ended December 31, SC engaged in the following transactions involving notes payable.…
A: Journal entries is recording the of the transaction in the accounting journal in a chronological…
Q: Campus Flights takes out a bank loan in the amount of $300,000 on March 1. The terms of the loan…
A: The question is related to interest for the period and the principal amount due in year 1. The…
Q: Martinez Co. borrowed $52,557 on March 1 of the current year by signing a 60-day, 12%,…
A: Notes payable is categorized as a negotiable instrument signed by the promisor who agreed to pay a…
Q: Campus Flights takes out a bank loan in the amount of $300,000 on Harch 1. The terms of the loan…
A: Principle Due in 1 year = Original loan amount - principal repayment in first installment**…
Q: Martinez Co. borrowed $58,220 on March 1 of the current year by signing a 60-day, 11%,…
A: Notes payable is a negotiable instrument signed by the promisor who agreed to pay a certain amount…
Q: On October 1, Eli's Carpet Service borrows $125,000 from First National Bank on a 3-month, $125,000,…
A: Accrued Interest means the Interest which is already due but not paid with in the specific due date…
Q: On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31,…
A: Interest accrued on December 31, 2018 = Amount borrowed x rate of interest x period = $18,000 x 5% x…
Q: Martinez Co. borrowed $74,240 on March 1 of the current year by signing a 60-day, 12%,…
A: Given, Face value of the note = $74,240 Interest rate = 12% Period = 60 days
Q: On January 1, 2021, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year,…
A: Borrowings refers to a financial transaction wherein a borrower (any person or company) approaches a…
Q: The Continental Bank made a loan of $21,000.00 on March 4 to Dr. Hirsch to purchase equipment for…
A: Loan Amount $ 21,000.00 Loan date 04-03 Interest Rate on 04th…
Q: On November 25 of the current year, a company borrows $8,000 cash by signing a 90-day, 5% note…
A: The accrued interest payable shall be recorded on December 31 in accordance with the accrual basis…
Q: Keesha Co. borrows $235,000 cash on November 1 of the current year by signing a 90-day, 11%.…
A: Mature date = 30 Jan
Q: xtended a 5,000,000, 10% loan to a borrower. The principal is due in 4 years time but interest is…
A: A financial responsibility might be a contractual obligation to give cash or something comparable to…
Q: On June 30, Year 3, Franklin Company's total current assets were $496,000 and its total current…
A: Total current assets after issuing the note =Total current assets before issuing the note + Cash…
Q: he following selected transactions relate to liabilities of Food Emporium whose fiscal year ends on…
A: Journal entry for the issue of notes payable is a debit to cash and a credit to notes payable.
Q: On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 7 percent…
A: a. Interest income = Loan amount x interest rate x no. of months/12 = $12000*7%*8/12 = $560
Q: Campus Flights takes out a bank loan in the amount of $210,000 on March 1. The terms of the loan…
A: Laon amortization schedule means where repayment during the life of loan is written with interest.
Q: On June 30, Year 3, Franza Company’s total current assets were $900,000 and its total current…
A: Solution.... (a).After issuing of notes Current assets = $900,000 Current liabilities =…
Q: On June 15, Julio borrowed $1,010.00 from Sheridan Credit Union at 6.7% per annum calculated on the…
A: Repayment Schedule: It is the tabular representation of loan payments occurring periodically showing…
Q: Mika Company secured a one-year bank loan of P8,000,000 on October 1, 2010. The loan is discounted…
A: Loan Amount = P 8,000,000 Discount Rate = 10 % Repayment = Due after one year
Q: A six-month bank loan in the amount of $12,000 had been obtained on September 1. Interest is to be…
A: Accrual Concept - According to this concept all the expenses incurred whether paid or not and all…
Q: On January 1, 2018, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a…
A: Interest on Note = Principal amount x rate of interest x time = $14,000,000 x 6% x 1 years =…
Q: On July 1, 2020, Jason Corporation pledged P5,000,000 of its accounts receivable to Philippine Bank…
A: Accounts Receivable Pledging:- It is the use of accounts receivable as collateral to secure loans…
Q: On April 1, 2021, Baker Construction, Inc. signed a note for a loan from its bank. The following are…
A: Journal entries are made with a view to record the transaction happened during the period. In this…
Q: ABC Bank granted a loan to a client on January 1, 20x1. The interest on the loan is 10% payable…
A: Effective Interest rate: It is the rate at which initial carrying amount of the loan receivable is…
Q: Slack Inc. borrowed $320,000 on April 1. The note requires interest at 12% and principal to be paid…
A: Accrual basis: Accrual basis is a method of accounting. In this method recording of revenues are…
Q: On March 1, 20x4, Popular Bank agrees to lend $100.00 to your company through a written contract for…
A: A note a legal document between two parties whereby one party agrees to pay the other a preagreed…
Q: Campus Flights takes out a bank loan in the amount of $300,000 on March 1. The terms of the loan…
A: Loan: A loan is a kind of debt that may be undertaken by a person or by a business. A quantity of…
Q: On January 1, 20x1, SUBDUE Co. borrowed 10%, P4,000,000 loan from CONQUER Bank. Principal is due on…
A: Bank service fees = Loan amount x 3% = 4000000 x 3% = 120,000
Q: Joni Corporation borrows $500,000 from Bank A on Feb. 1, 20X8. The principal will not be repaid…
A: Liabilties are the amount of dues that need to be settled by the business. Liability can be for…
Q: On January 1, 20x1, ABC Co. extended a P1,000,000 loan to one of its officers as part of ABC’s car…
A: Formula: Interest income for the year ended December 31,20x3 = Carrying value of the note at the end…
Q: Abardeen Corporation borrowed $90,000 from the bank on October 1, Year 1. The note had an 8 percent…
A: A. AMOUNT OF CASH PAID : = $0 B. INTEREST EXPENSE : = $90,000 X 8% X 3MONTHS / 12 MONTHS =…
Q: On June 30, Year 3, Franklin Company's total current assets were $500,500 and its total current…
A: The ratio analysis helps to analyze the financial statements of the business. The current ratio anf…
Q: On January 1, 2021, Nantucket Ferry borrowed $14,600,000 cash from BankOne and issued a four-year,…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On January 1st, 20x0 "ABC" Company borrowed $150,000 for 4.00 years from a local bank. According to…
A: The interest paid over the term of a loan can be computed by deducting the amount borrowed from the…
Q: Assuming loan made by M Enterprises to Banco De Oro amounting to P350,000.00 payable in three years…
A: Defination: A Drawer is a person who borrows money on credit and author of the check.A Payee is a…
Q: On December 1, Victoria Company signed a 90-day, 6% note payable, with a face value of $15,000. What…
A: Interest accrued = Note payable x Interest rate x 30/360 = $15000 x 6% x 1/12 = $75
On June 15, 20 x 0 Mr. Gerald Green Gabriel, owner of Boracay Ocean Park Hotel, availed a business loan from Filipinas Bank in the amount of P1,000,000.00. Principal repayment shall be on June 15, 20x1. Interest shall be paid every 15th day of the month @ 10% per annum beginning July 15, 20x0.
In the book of Filipinas Bank....
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- Required:1. Prepare journal entries for each transaction.2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on theinformation presented and balance off each account.3. Prepare the balance sheet extract as at Dec 31 to show the net realizable value for theAccounts Receivable.4. Assume that the aging of accounts receivable method was used by the company and that$7,050 of the accounts receivable as of December 31 were estimated to be uncollectible. Youare now required to:a. Determine the amount to be charged to uncollectible expense (show yourworkings for the computation of this figure).b. Prepare the balance sheet extract to show the net realizable value of the AccountsReceivable as at December 31(a) On March 1, journalize the entry to record the write-off, assuming that the direct write-off method is used. Refer to the Chart of Accounts for exact wording of account titles.PAGE 1JOURNALACCOUNTING EQUATIONDATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY12(b) On March 1, journalize the entry to record the write-off, assuming that the allowance method is used. Refer to the Chart of Accounts for exact wording of account titles.PAGE 1JOURNALACCOUNTING EQUATIONDATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY12Presented below are transactions related to Cullumber Company. On December 3, Cullumber Company sold $ 621,900 of merchandise on account to Bramble Co., terms 2/10, n/30, FOB destination. Cullumber paid $ 430 for freight charges. The cost of the merchandise sold was $ 365,200. 1. On December 8, Bramble Co. was granted an allowance of $ 23,200 for merchandise purchased on December 3. On December 13, Cullumber Company received the balance due from Bramble Co. 2. 3. Prepare the journal entries to record these transactions on the books of Cullumber Company using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Crei 1. (To record credit sale) (To record cost of merchandise sold) (To record freight charges) 2. > 3.
- (b) Assume that Sheridan Company received the balance due from Grouper Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Save for Later Attempts: 0 of 4 used Submit AnswerIf Metlock Company uses the allowance method to account for uncollectible accounts, journalize the entry if on May 8 Metlock determined that Randal Company's $760 balance is uncollectible. (List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation May 8 Bad Debt Expense Allowance for Doubtful Accounts Debit 760 Credit 760Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October are as follows: Oct. 2. Purchased office supplies on account from Meade Co., $4,720. 5. Purchased office equipment on account from Peach Computers Co., $6,790. 9. Purchased office supplies on account from Executive Office Supply Co., $490. 13. Purchased field supplies on account from Yamura Co., $5,370. 14. Purchased field supplies on account from Omni Co., $710. Purchased field supplies on account from Yamura Co., $12,780. 17. 24. Purchased field supplies on account from Omni Co., $3,600. 29. Purchased office supplies on account from Executive Office Supply Co., $320. Purchased field supplies on account from Omni Co., $4,710. 31. Note:…
- On July 1, 2020, Bridgeport Corporation purchased Johnson Company by paying $189,700 cash and issuing a $64,500 note payable to Steve Johnson. At July 1, 2020, the balance sheet of Johnson Company was as follows. Cash $38,100 Accounts payable $160,000 Accounts Receivable 67,500 Stockholders' equity 165,800 Inventory 75,800 $325,800 Land 29,400 Buildings (net) 55,200 Equipment (net) 52,200 Copyrights 7,600 $325,800 The recorded amounts all approximate current fair values except for land (worth $45,400), inventory (worth $94,900), and copyrights (worth $11,300).Ceradyne Limited accepts a three-month, 7%, $43,600 note receivable in settlement of an account receivable on April 1, 2018. Interest is due at maturity. Prepare the journal entries required by Ceradyne Limited to record the issue of the note on April 1, and the settlement of the note on July 1, assuming the note is honoured and that no interest has previously been accrued. (Credit account titles are automatically indented when the 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.) te Account Titles and Explanation < Debit C Prepare the journal entries required by Ceradyne Limited to record the issue of the note on April 1, and the settlement of the note on July 1, assuming that the note is dishonoured, but eventual collection is expected. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…Part A: Prepare the July 1 entry for Flounder Corporation to record the purchase. (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 0 for the amounts. List all debit entries before credit entries.)
- 13. On September 1, a customer's account balance of $2,300 was deemed to be uncollectible. What entry should be recorded on September I to record the write-off assuming the company uses the allowance method? a. Debit Bad Debts Expense $2.300; credit Accounts Receivable S2,300. b. Debit Allowance for Doubtful Accounts S2.300; credit Bad Debts Expense $2,300. c. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300. d. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300. 14. The direct write-off method a. Complies with the matching principle b. Is acceptable from a theoretical point of view c. Is only acceptable if bad debts are small, insignificant amounts d. Is the primary method used to recognize Bad Debt Expense 15. When the allowance method of recognizing bad debt expense is used, the entries at the time of collection of a small account previously written off would a. Increase net income b. Increase Allowance for Bad Debts c.…The following information pertains to Sandhill Company. 1. 2. 3. 4, 5. Cash balance per books, August 31, $7,424. Cash balance per bank, August 31, $7,388. Outstanding checks, August 31, $697. August bank service charge not recorded by the depositor $49. Deposits in transit, August 31, $3.160. In addition, $2,476 was collected for Sandhill Company in August by the bank through electronic funds transfer. The collection has no been recorded by Sandhill Company.Vaughn Limited, which uses a perpetual inventory system, purchased inventory costing $22,000 on February 1 by issuing a 3-month note payable bearing interest at 6%, with interest and principal due on May 1. The company's year end is on March 31 and the company records adjusting entries only at that time. Your answer is correct. Prepare the journal entry to record the purchase of inventory on February 1. (Credit account titles are automatically indented when the 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. List debit entry before credit entry.) Date Account Titles Feb. 1 (b) Inventory Notes Payable eTextbook and Media List of Accounts Your answer is correct. Mar. 31 Date Account Titles Interest Expense Debit Interest Payable Prepare the journal entry to record the accrual of interest expense on March 31. (Credit account titles are automatically indented when the amount is entered. Do not indent…