Malco Enterprises issued $10,000 of common stock when the company was started. In addition, Malco borrowed $36,000 from a local bank on July 1, Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $72,500 of revenue on account in Year 1 and $85,200 of revenue on account in Year 2. Cash collections of accounts receivable were $61,300 in Year 1 and $71,500 in Year 2. Malco paid $39,000 of other operating expenses in Year 1 and $45,000 of other operating expenses in Year 2. Malco repaid the loan and interest at the maturity date.   What amount of interest expense would be reported on the Year 2 income statement? What amount of cash flows from operating activities would be reported on the Year 2 cash flow statement? What amount of assets would be reported on the December 31, Year 2, balance sheet?

Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash $22,000 Accounts payable $15,000 Investments (short-term) 3,000 Accrued liabilities payable 4,000 Accounts receivable 3,000 Notes payable (current) 7,000 Inventory 20,000 Notes payable (noncurrent) 87,000 Notes receivable (long-term) 1,000 Long-term lease liabilities 63,000 Equipment 50,000 Common stock 10,000 Factory building 90,000 Additional paid - in capital 117,000 Operating lease right - of - use assets 140,000 Retained earnings 31,000 Intangible assets 5,000 During the current year, the company had the following summarized activities: Purchased short-term investments for $ 10,000 cash. Lent $5,000 to a supplier, who signed a two-year note. Leased equipment that cost $18,000; paid $5,000 cash and signed a five-year right-of-use lease for the balance. Hired a new president at the end of the year. The contract was for $85,000 per year plus…

Colson Company has a line of credit with Federal Bank. Colson can borrow up to $407,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage, along with the amounts borrowed and repaid during the first four months of Year 1. Colson agreed to pay Interest at an annual rate equal to 2.00 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.25 percent (4.25 percent - 2.00 percent) annual Interest on $83,300 for the month of January. Month January February Month January February March April March April Required: a. Compute the amount of Interest that Colson will pay on the line of credit for the first four months of Year 1. Note: Do not round intermediate calculations. Round your final answers to the nearest whole…

Malco Enterprises issued $10,000 of common stock when the company was started. In addition, Malco borrowed $36,000 from a local bank on July 1, Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $72,500 of revenue on account in Year 1 and $85,200 of revenue on account in Year 2. Cash collections of accounts receivable were $61,300 in Year 1 and $71,500 in Year 2. Malco paid $39,000 of other operating expenses in Year 1 and $45,000 of other operating expenses in Year 2. Malco repaid the loan and interest at the maturity date.     Organize the information in accounts under an accounting equation. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement? What amount of interest expense would be reported on the Year 1 income statement?

Green Valley Bank sent Comstock Industries its end-of-month bank statement for July. The end of month balance by the bank is $11,237. The statement shows that a deposit for $4,250 is in transit at the end of the statement period. The statement also revealed that checks for $87, $105, and $95 are outstanding. Green Valley collected a $4,000 note receivable plus $120 of interest revenue. The bank charges $20 for the collection service. The bank charges a monthly account fee of $35. The end-of-month balance per company books is $11,135. Question Content Area a. Prepare a bank reconciliation. Comstock Industries Bank Reconciliation July 31 Line Item Description Amount Amount Cash balance according to bank statement $Cash balance according to bank statement Deduct: Deposits in transit Deduct: Outstanding checks Adjusted balance $Adjusted balance Cash balance according to company's records $Cash balance according to company's records Add: Note and interest collected by bank $Deduct:…

On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $68,500 face value, four-year term note that had an 9 percent annual interest rate. The note is to be repaid by making annual cash payments of $21,144 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $37,675 cash per year. statement of cash flow

Keesha Company borrows $115,000 cash on November 1 of the current year by signing a 180-day, 11%, $115,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 On what date does this note mature? (Assume that February has 28 days.) On what date does this note mature?

Keesha Co. borrows $100,000 cash on November 1 of the current year by signing a 150-day, 10%, $100,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 On what date does this note mature? (Assume that February has 28 days.) On what date does this note mature?

On June 30, Year 3, Zachary Company’s total current assets were $504,000 and its total current liabilities were $271,000. On July 1, Year 3, Zachary issued a long-term note to a bank for $39,000 cash. Requireda. Compute Zachary’s working capital before and after issuing the note.b. Compute Zachary’s current ratio before and after issuing the note

On August 1, Taylor Company lent $80,000 to L. King on a 90-day, 5% note. 14. Journalize for Taylor Company the lending of the money on August 1. 15. Journalize the collection of the principal and interest at maturity. Specify the date. Round interest to the nearest dollar. 14. Journalize for Taylor Company the lending of the money on August 1. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. For notes stated in days, use a 365-day year.) Date Aug. 1 Accounts and Explanation Debit Credit