Crafty Cave Products borrowed $200,000 cash by issuing a 48-month, $246,660 zero coupon note on January 1, 2024. The note matures on December 31, 2027. Prepare the entry to recognize 2027 interest and repayment of the note at maturity. If an amount box does not require an entry, leave it blank.

Crafty Cave Products borrowed $200,000 cash by issuing a 48-month, $246,660 zero coupon note on January 1, 2024. The note matures on December 31, 2027. Prepare the entry to recognize 2027 interest and repayment of the note at maturity. If an amount box does not require an entry, leave it blank.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P8,000,000 note from ABC Co. FDN immediately…

A: Total Interest Expense = Value of Notes receivable x Interest Expense

Q: On January 1, 2022, Easy Company sold merchandise for 500,000 by accepting a note for 6 months with…

Q: Sylvestor Systems borrows $185,000 cash on May 15 by signing a 150-day, 7%, $185,000 note. 1. On…

A: Journal: Recording of a business transactions in a chronological order.

Q: On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing…

A: Formula: Interest amount = Bond face value x Interest rate Multiplying bond face value with interest…

Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P7,000,000 note from ABC Co. FDN immediately…

A: Maturity value of the note = Face value of the not + Interest on the note = 7000000 +…

Q: On 14 December 2021, Catz Zone Enterprise received the monthly bank statement for the month of N…

A: Bank Reconciliation Statement as at 30 November 2021 Particulars Amount Closing…

Q: A promissory note with a face value of $12,300 is written on February 22, 2015 and is due on June…

A: 1) Compound interest =P(1 + r/n) (nt) Here p= 12300 R=11.5% N=7.25 yrs Compound interest…

Q: On December 31, 2022, Company sold land in exchange for a nine-month, 10% note. The note requires…

A: As per the given information: Land sold in exchange for a nine-month,10% note.Payment - $200,000…

Q: On March 11, 2022, FDNÁCCT Services issued to a lender a 120-day, non- interest-bearing P400,000…

A: Note payable: Note payable is an instrument through which the borrower obtains money from the…

Q: On October 1, 2025, Sheffield, Inc. assigns $1,160,700 of its accounts receivable to Tamarisk…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Q: DE LA CRUZ Company received a 10%,180 day note from its customer on April 1, 2021. The note has a…

A: Solution : Given Face value =P500,000 interest rate =10% discount rate = 12 % date…

Q: lint, Inc. issued a $185,000, 4-year, 11% note at face value to Flint Hills Bank on January 1, 2017,…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Descriptors are provided below for six situations involving notes receivable being discounted at a…

A: Notes receivables are the company's asset as it is the amount that is to be received at the end of…

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: Recording the journal entries for Bank's Hardware Store are as follows:

Q: On November 1, 2021, Calexico Trading accepted a 90-day, 8% P2,000,000 note from ABC Co. Calexico…

A: Notes Payable / Receivable The purpose issuing the Notes receivable / Notes payable to collect the…

Q: On December 31, 2020, Sheridan Company has $5970000 of short-term notes payable due on February 14,…

A: ANSWER : Correct option is- $840,000.

Q: On December 31, 2020, Vaughn Manufacturing has $6030000 of short-term notes payable due on February…

A: Short term liabilities or current liabilities are those liabilities which needs to be settled or…

Q: E10.1 (LO 1), AP C.S. Lewis Company had the following transactions involving notes payable. July 1,…

A: Note payable: Note payable also called promissory note. It is a legal instrument in which one party…

Q: Arvan Patel is a customer of Bank’s Hardware Store. For Mr. Patel’s latest purchase on January 1,…

A: Total interest on Note = face value of note x rate of interest x no. of years = $459,505 x 14% x 2…

Q: On April 1, 2025, Marigold Company assigns $505,300 of its accounts receivable to the Third National…

A: Journal entries are those which are reported in the books of accounts in order to maintain a proper…

Q: On September 1, 2021, Middleton Corp. lends cash and accepts a $1,200 note receivable that offers 6%…

A: Interest revenue for the period from September 1, 2021 to December 31, 2021 will be recognized in…

Q: ook Inc. accepts on April 1, 2022 a 120-day 12% note for $8,000 worth of accounts receivable past…

A: At maturity, notes are often utilized in a variety of financial transactions, including loans,…

Q: date of the note is December 31, 2018, and the principal and interest are due at maturity. F from…

A: Cash ProceedsCash proceeds refer to the money received from a financial transaction, such as the…

Q: am.111.

A: The objective of the question is to calculate the amount of money Selkirk Company will receive from…

Q: On June 30, 2020, GHI Company discounted at the bank a customer P6,000,000, 6-month, 10% note…

A: A note receivable is an instrument that promises the holder of the note a certain amount of sum…

Q: S. Sunland Company had the following transactions involving notes payable. July 1, 2025 Nov. 1, 2025…

A: Note payable is a kind of loan that is repaid after a certain period of time with a specific rate of…

Q: Indigo County Bank agrees to lend the Wildhorse Brick Company $534000 on January 1. Wildhorse Brick…

A: Notes Payable is a documentary evidence issued by the borrower. This document acts as a promissory…

Q: On January 1, 2019, Love Co. sold merchandise to Kit Store in exchange for a non-interest bearing…

A: Value of notes receivable as of January 1, 2019 = Annual payment x PVIAF (8%, 10 years) = P100,000 x…

Q: Outer Armour (OA) is a company that sells high quality outerwear. OA has accepted two notes…

A: The adjustment entries are prepared to adjust the revenue and expenses of the current period. The…

Q: Bramble Corp. lends Novak industries $50400 on August 1, 2022, accepting a 9-month, 12% interest…

A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: Analyzing Interest-Bearing and Noninterest-Bearing Notes Consider the following three separate…

A: Bond valuation is the process of determining the fair or intrinsic value of a bond. The value of a…

Q: On November 1, 2023, Tommy Tunes accepted a $15,200, 6-month, 4% note from customer Tammy Notune.…

A: Notes receivable refers to a written, unconditional promise made by an individual or business to pay…

Q: ired of the probl

A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Descriptors are provided below for six situations involving notes receivable being discounted at a…

A: Notes receivable is an asset of a company. It is a written promise document to receive a certain…

Q: Descriptors are provided below for six situations involving notes receivable being discounted at a…

A: Introduction:- Notes receivable is an asset of a company. It is a written promise document to…

Q: On November 1, 2021, FDN Trading accepted a 90-day, 8% P9,000,000 note from ABC Co. FDN immediately…

A: Maturity value of the note = Face value of the not + Interest on the note = 9000000 +…

Q: Der 30", 2020 for OMR 10,000 with an interest rate of 5%. The maturity date of the note is 11th…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Question

Crafty Cave Products borrowed $200,000 cash by issuing a 48-month, $246,660 zero coupon note on January 1, 2024. The note matures on December 31, 2027.

Prepare the entry to recognize 2027 interest and repayment of the note at maturity. If an amount box does not require an entry, leave it blank.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Promissory Note

VIEW

Step 2: Preparing Journal Entry

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On December 1, 2021, a company converted an existing account receivable in the amount of $6,000 to a note receivable to allow an extended payment period. The note is due in three months and includes an annual interest rate of 9%. The company prepares year-end financial statements on December 31 and recorded adjusting entries at that time. What entry should the company make on March 1, 2022, when the interest is paid at maturity? Multiple Choice Debit Cash and credit Notes Receivable for $6,135. Debit Cash for $6,135, credit Notes Receivable for $6,000, and credit Interest Revenue for $135. Debit Cash for $135 and credit Interest Revenue for $135. О Debit Cash for $135, credit Interest Receivable for $45, and credit Interest Revenue for $90.
Rotel purchased merchandise from TechCom on October 17, 2019. TechCom accepted Rotel's $4,800, 90-day, 10% note as payment. TechCom has a December 31st year end. What entry should TechCom make on January 15, 2020 when the note is honoured? Multiple Choice Cash 4918.36 Interest Earned 19.73 Interest Receivable 98.63 Notes Receivable 4,800 Cash 4918.36 Interest Earned 98.63 Interest Receivable 19.73 Notes Receivable 4,800 Cash 4918.36 Notes Receivable 4918.36 Cash 4918.36 Interest Earned 118.36 Accounts Receivable 4,800 Cash 4918.36 Interest Earned 118.36 Notes Receivable 4,800 The Liccorish Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom's journal entry to record the transaction is Multiple Choice Notes Receivable 5,125 Sales 5,125 Accounts…
West County Bank agrees to lend Wildhorse Co. $472000 on January 1. Wildhorse Co. signs a $472000, 6%, 6-month note. What entry will Wildhorse Co. make to pay off the note and interest at maturity assuming that interest has been accrued to June 30? Notes Payable 486160 Cash 486160 Interest Payable 7080 Notes Payable 472000 Interest Expense 7080 Cash 486160 Notes Payable 472000 Interest Payable 14160 Cash 486160 Interest Expense 14160 Notes Payable 472000 Cash 486160
At December 31, 2021, Sheridan Company had a five-month, 5%, $79,200 note receivable that was issued on October 1, 2021. Interest and principal are payable at maturity on March 1, 2022. Prepare the March 1, 2022, entry to record the receipt of cash at maturity for the note
Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate. Required: a. Compute the proceeds. Assume a 360-day year. b. If the maker dishonored the note at maturity, prepare the entry for Max Corp. assuming $75 of bank protest fees. If an amount box does not require an entry, leave it blank.
Problem: ABC Company issued a promissory note to RCBC Bank. Details from the promissory note are as follows: Date of note: November 1, 2020 Term of note: 180 days Principal: P120,000 Interest rate: 12% Determine the following: 1. What is the account to be credited on the adjusting entry on December 31, 2020? 2. How much is the amount to be credited on December 31, 2020? 3. How much is the total interest expense for the full term of the note.
On November 1, 2021, FDN Trading accepted a 90-day, 8% P45,000,000 note from ABC Co. FN immediately discounted with recourse the note to a bank that offers a 12% discount rate. FDN assumes the interest expense associated with this transaction. How much interest expense should FN Trading debit on its records? Calculate the total interest expense and NOT the net interest expense.
Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate. Required: a. Compute the proceeds. Assume a 360-day year. $ b. If the maker dishonored the note at maturity, prepare the entry for Max Corp. assuming $75 of bank protest fees. If an amount box does not require an entry, leave it blank.
On April 1, 2020, MMM company issues a $105,000, three -month, zero-interest-bearing note to Al-Ahli Bank. The present value of the note is $102,000. Record all necessary entries in 2020 if you know the company prepare financial statement semiannually?
Ireland Corporation obtained a $62,000 note receivable from a customer on June 30, 2021. The note, along with interest at 5%, is due on June 30. 2022. On September 30, 2021, Ireland discounted the note at Cloverdale bank. The bank's discount rate is 8%. What amount of cash did. Ireland receive from Cloverdale Bank? Multiple Choice $58,094. $57,040. $62.775. < Prev 15 of 15 Next
please answer correct