Flint Corporation issued a 5-year, $66,000, zero-interest-bearing note to Garcia Company on January 1, 2025, and received cash of$66,000. In addition, Flint agreed to sell merchandise to Garcia at an amount less than regular selling price over the 5-year period. Themarket rate of interest for similar notes is 11%.Click here to view factor tables.۵Prepare Flint Corporation's January 1 journal entry. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and finalanswer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Creditaccount titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)DateAccount Titles and ExplanationJanuary 1,2025DebitCredit

Step 1:Computation of the PV factor at 11% for 5 years: Present value (PV) factor= 1/(1+r)^n=…

Answered: Flint Corporation issued a 5-year,…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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Similar questions

Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Riverbed Corporation issued a 5-year, $80,000, zero-interest-bearing note to Garcia Company on January 1, 2025, and received cash of $80,000. In addition, Riverbed agreed to sell merchandise to Garcia at an amount less than regular selling price over the 5-year period. The market rate of interest for similar notes is 12%. Click here to view factor tables. Prepare Riverbed Corporation's January 1 journal entry. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 38,548. 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. List all debit entries before credit entries.) Date January 1, 2025 Account Titles and Explanation Cash Discount on Notes Payable Notes Payable Unearned Sales Revenue Debit 80000 Credit 110 80000
Grouper Corporation issued a 4-year, $62,000, zero-interest-bearing note to Garcia Company on January 1, 2020, and received cash of $62,000. In addition, Grouper agreed to sell merchandise to Garcia at an amount less than regular selling price over the 4-year period. The market rate of interest for similar notes is 12%. Prepare Grouper Corporation’s January 1 journal entry. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit CreditJanuary 1, 2020
A company sold goods to a customer in exchange for a 5-year, zero-interest-bearing note on January 1, 2021. The note has a face amount of $308,000. The company imputes a 10% interest rate on this zero-interest note transaction. Present value factor for 10% and 5 years, single sum is 0.62. In the journal entry made on 12/31/2022, the company will record Discount on Notes Receivable by $__________. (Please do not use your own present value tables or financial calculator.) (Please do not round your answer in any part of the computation.) (DO NOT put a plus or minus sign in front of the amount.)
Headland Corporation issued a 5-year, $65,000, zero-interest-bearing note to Brown Company on January 1, 2025, and received cash of $32,317. The implicit interest rate is 15%. Prepare Headland's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to O decimal places, e.g. 38,548. 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. List all debit entries before credit entries.) Date 1, 2025 31, 2025 Account Titles and Explanation Cash Discount on Notes Payable Notes Payable Interest Expense Discount on Notes Payable IIII Debit 32317 32683 6536.6 Credit 65000 6536.6
Headland Corporation issued a 5-year, $65,000, zero-interest-bearing note to Brown Company on January 1, 2025, and received cash of $32,317. The implicit interest rate is 15%. Prepare Headland's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to O decimal places, e.g. 38,548. 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. List all debit entries before credit entries.) No. (a) (b) Date Account Titles and Explanation Debit Credit
On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith’s $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial year ends December 31. REQUIRED: 1. Provide the following input values from your financial calculator: N = I/Y = PMT = FV = 2. The note was issued at = 3. The present value of the note is =
Riverbed Corporation issued a 5-year, $82,000, zero-interest-bearing note to Brown Company on January 1,2025 , and received cash of $48,663. The implicit interest rate is 11%. Prepare Riverbed's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. (a)
Shlee Corporation issued a 4-year, $60,000, zero-interest-bearing note to Garcia Company on January 1, 2020, and received cash of $60,000. In addition, Shlee agreed to sell merchandise to Garcia at an amount less than regular selling price over the 4-year period. The market rate of interest for similar notes is 12%. Prepare Shlee Corporation's January 1 journal entry.
BBY Company loaned $66,116 to Orwell, Inc, accepting Orwell's 2-year, $80,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare BBY's journal entries for the initial transaction, recognition of interest each year, and the collection of $80,000 at maturity. Debit - Notes Receivable $80,000 Credit - Credit - Cash Debit - Credit - Debit - Credit - Interest Revenue 6.026 DEC 16 618 10

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