Marin Ltd. started the year with a balance owing from Stratford Inc. of $31,200. After several phone calls, on Feb. 1, 2021, Stratford offered to sign a 5% note for the balance owing. The note is due May 1, 2021. Marin has a calendar year end and adjusts its accounts monthly. On May 5, Marin Ltd. was notified that Stratford Inc. went bankrupt and would not be paying off its debts. Required: Prepare all journal entries and month-end adjusting entries from Feb. 1, 2021 to May 5, 2021 for Marin Ltd.

Marin Ltd. started the year with a balance owing from Stratford Inc. of $31,200. After several phone calls, on Feb. 1, 2021, Stratford offered to sign a 5% note for the balance owing. The note is due May 1, 2021. Marin has a calendar year end and adjusts its accounts monthly. On May 5, Marin Ltd. was notified that Stratford Inc. went bankrupt and would not be paying off its debts. Required: Prepare all journal entries and month-end adjusting entries from Feb. 1, 2021 to May 5, 2021 for Marin Ltd.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hi, How do i solve for the missing amounts?
Jesse Company adjusts its accounts monthly and closes its accounts on December 31. On October 31, year 1, Jesse Company signed a note payable and borrowed $120,000 from a bank for a period of six months at an annual interest rate of 6 percent. a. How much is the total interest expense over the life of the note? How much is the monthly interest expense? (Assume equal amounts of interest expense each month.) b. In the company's annual balance sheet at December 31, year 1, what is the amount of the liability to the bank? c. & d. Prepare the journal entry to record issuance of the note payable on October 31, year 1 and the adjusting entry to accrue interest on the note at December 31, year 1. e. Assume the company prepared a balance sheet at March 31, year 2. State the amount of the liability to the bank at this date. Complete this question by entering your answers in the tabs below. Req A Req C and D Req E How much is the total interest expense over the life of the note? How much is the…
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?
Windsor Company borrowed $49,200 on November 1, 2025, by signing a $49,200, 10%, 3-month note. Prepare Windsor's November 1,2025, entry; the December 31, 2025, annual adjusting entry; and the February 1, 2026, entry. (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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
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?
Jenkins Inc. had the following transactions. Sep 1 Loaned $20,000 to an employee, who signed a 9-month, 9% note. Interest and principal will all be due on May 31. Dec. 31- Accrued interest on the note. (Round to the nearest whole dollar amount.) May 31 Received the interest on the note's maturity date. PE May 31 amount.) Required: Prepare the required journal entries. Use the MSWord link for the table to write your journal entries. After you have written the journal entries on the table in the MSWord document provided, Received the principal on the note's maturity date. (Round to the nearest whole dollar
The company has a mortgage note payable for $1,500,000 that comes due in year 3. this note is paid by the signing of a new 14% note for the amount due. how do I prepare the journal entry to record this refinancing of the old note?
On May 25, Al Mujaaz Company made a credit sale of OMR 220,000 to Al Zahir Company and received a note for four months with 8% interest from him in settlement of account receivables. Al Mujaaz Company closes their accounts every year on July 31st and calculated accrued interest on the note of May 25. Al Mujaaz Company received Notification from Al Zahir that he was unable to honour his note on the due date and it is expected that AlZahir will pay at a later date but On 1st OctoberAl Zahir has paid full amount on note, On May 25, Another note for 60 days 11.5% interest has been received for OMR 112,000 from Al.Zubair Company has been honoured on the due date. Prepare Necessary Journal entries for the above Transactions
d
Splish Brothers Inc. began operations in July 2019. At the end of the month, the company prepares monthly financial statements. It has the following information for the month. At July 31, the company owed employees $1,600 in salaries that the company will pay in August. On July 1, the company borrowed $26,000 from a local bank on a 10-year note. The annual interest rate is 15%. 1. 2. 3. Service revenue unrecorded in July totaled $2,600. Prepare the adjusting entries needed at July 31, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. 2. July 31 3. Accounts Receivable 2600 Service Revenue 2600
Sarasota Company borrowed $34,800 on November 1, 2025, by signing a $34,800, 9%, 3-month note. Prepare Sarasota's November 1, 2025, entry; the December 31, 2025, annual adjusting entry; and the February 1, 2026, 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 amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
On January 1, 2021, CPS Co. borrowed $340,000 cash from iLend and issued a five-year $340,000, 4% note. Interest was payable annually on December 31. Required: Prepare the journal entries for both firms to record interest at December 31, 2021.