(a)(b) (i) borrowing of loan on 1 April 2019.019-2Date2019 Apr 1depends on how much is overdrawn. The limit of overdrawing is an amount agreedThe amount of Bank loan borrowed is fixed. Whereas the amount of overdraftby the bank. For bank loan the business is required to make repayment according toagreed terms with the bank but for overdraft the business can deposit cash into thebank account to reduce the overdraft.Date2019Dec 3131Date2020Jan 1Apr 1Dec 3131ParticularsCash at bankBank loanREQUIRED(ii) interest expense incurred at 31 December 2019, including the closing entry.Narrations are not required. [ParticularsDr $180 000Interest expense (amount incurred for the year)Interest expense payableParticularsIncome summary (to close interest expense account) 6750Interest expenseMurniz Restaurant provided the following information on its interest expense account.Interest expense A/cDr$Interest expense payableCash at bankInterest expense payableIncome summaryCr $180 00090005606750Dr$ Cr$67502810Cr$67506750Bal$6750 Cr2250 Dr2810 Dr0(c) Interpret the entries on the following dates.(i) 1 January 2020On 1 Jan 2020, the business reversed the adjustment made for interest expenseowed in the previous year of $6750.(ii) 1 April 2020On 1 July 2020, the business paid the bank interest of $9000 by cheque.(iii) 31 December 2020, relating to the interest expense payable entry.nts[2]

Interest Expense - The fee a company pays for borrowed money is known as an interest expenditure.…

Answered: borrowed is fixed. on how much is…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 12RQ: When a business borrows money from a bank on a non-interest-bearing note, how are the bank discount...

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Bank Sohar declares the profit for the year ended 2019-20. They makes profit: a. When their rate of interest on loan is less than the deposit rates b. When bank Sohar asset is less than the liability c. When their bank liability is greater than their assets d. When their rate of interest on loan is greater than the deposit rates Clear my choice
2. Milo Corporation has a line of credit with a bank for $5,000,000 in June 30, 2018 payable on December 31, 2019. The company has no existing deposit with the bank. The bank requires the borrower a compensating balance of 5% and charges 15% for loans availed. a) How much should the company borrow to have a net proceeds of $5,000,000? b) What is the effective interest rate from this transaction if:b-1) interest rate is paid at the end of the term?b-2) interest is deducted in advance? SHOW YOUR SOLUTION PLEASE DONT USE MS EXCEL
Suppose a business receives a 907000 long term bank loan on December 31 2019 the borrowing arrangement requires the business to pay 226 750 by September 2020 show how the business will report both current and long term liabilities on its December 31 2019 balance sheet .
On August 31, 2023, an entity discounted with recourse a note at the bank at discount rate of 15%. The note was received from the customer on August 1, 2023 for 90 days with face amount of P9,000,000 and an interest rate of 12%. The discounting transaction is accounted for as secured borrowing. The customer paid the note to the bank on October 30, 2023, the date of maturity. 4. What is the interest expense to be recognize on August 31, 2023? Group of answer choices 90,000 51,750 231,750 270,000 The entry on October 30, 2023 will include Group of answer choices Debit to notes receivable discounted P9,000,000 Debit to loans payable P9,038,250 Credit cash P9,000,000 Debit to loans payable P9,000,000
As on 31 May 2020 the deposits awaiting clearance is RO15,240 and cheques yet to be presented for payment is RO17,590; while the bank balance as recorded in the Cash book was RO 5,480. How much should be the bank balance as on 31 May 2020 as per bank statement? a. RO 6130 b. RO 6130 Overdraft c. RO 7830 d. RO 7830 overdraft -fast-
1. Journalize all entries for Symphony Bank related to the note for 2018 and 2019. 2. Which party has a a. note receivable? b. note payable? c. interest revenue? d. interest expense? 3. Suppose that Kara Perry defaulted on the note. What entry would Symphony record for the dishonored note?
1. Agogo Trading has the following account balances as at 30 June 2019. Account Receivable Provision for doubtful debt RM 200,000 6,000 On 30 June 2019, the following adjustment have to be made: i. Debts of RM500 are to be written off as bad ii. One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed iii. Provision for doubtful debts is 2% of the outstanding accounts receivables Required: For the year ending 30 June 2019 show the: a) Provision for doubtful debts account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract) 2. PUColowing is a summary of account receivable and related accounts for three SHOT ON POCO F2 PRO yedis for 1aPR9ly Entererice the financial vear ends 30 Apsl each year.
Prepare the bank reconciliation statement as 31 July 2021 for Mimosa General Dealers. Hint: Begin the reconciliation statement with the balance as per the adjusted bank account per Q.2.1 above. Clearly indicate if the balance per the bank statement amount you arrive at is a favourable or unfavourable balance as a mark will be awarded for this.
The following information was taken from the books of Zia Traders on 30 June 2019: 1. The items appearing on the bank reconciliation statement of Zia Traders as at 31 May 2019. Details Amount (R) Balance as per bank statement (unfavourable) 25400 Oustanding deposit 5700 Outstanding cheques: CHQ116 1430 CHQ135 2780 Correction of incorrect cheque(see note 2.5 below) 570 Balance as per bank account ? A comparison of the cashbooks for June, the above bank reconciliation statement and the bank statement for June showed the following: 2.1 Provisional totals in the cashbooks on 30 June: -Cashbook Receipts R 113 200 -Cashbook Payments R 96 000 2.2 The outstanding deposit at the end of May for R5 700 appeared on the bank statement on 5 June 2019. 2.3 Cheque number CHQ135 appeared on the bank statement on 7 June for R3 100. An investigation revealed that the bank statement amount was correct. 2.4…
1. Agogo Trading has the following account balances as at 30 June 2019. Account Receivable Provision for doubtful debt RM 200,000 6,000 On 30 June 2019, the following adjustment have to be made: i. Debts of RM500 are to be written off as bad ii. One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed ii. Provision for doubtful debts is 2% of the outstanding accounts receivables Required: For the year ending 30 June 2019 show the: a) Provision for doubtful debts account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract)
1. kgogo Trading has the following account balances as at 30 June 2019. RM 200,000 6,000 Account Receivable Provision for doubtful debt On 30 June 2019, the following adjustment have to be made: i. Debts of RM500 are to be written off as bad ii. One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed iii. Provision for doubtful debts is 2% of the outstanding accounts receivables Required: For the year ending 30 June 2019 show the: a) Provision for doubtful debts account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract)
2. At 31 March 2019, the cash book of Company 2 showed a debit balance of £56. An examination of the bank statements and the accounting records of the company revealed the following: On 30 March 2019, the bank wrote to Company 2 stating that a cheque of £360 received from a customer and banked on 25 March 2019 had bounced and had been dishonoured. This letter was only received by Company 2 on 2 April 2019. Bank charges of £460 appeared on the bank statement on 30 March 2019 but the company was unaware of this transaction. Receipts of £9,215 banked on 31 March 2019 were not cleared through the banking system until April 2019, while payments totalling £19,401, issued by the company in March 2019 were also not cleared through the banking system until April 2019. What was the balance appearing on the bank statement at 31 March 2019? A B C D £9,422 £(10,950) £9,310 £10,142

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