i.3 Camden Biotechnology began operations in September 2024. The following selected transactions relate to liabilities of the companyfor September 2024 through March 2025. Camden's fiscal year ends on December 31. Its financial statements are issued in April.2024a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to$17,000,000 at the bank's prime rate (12.5% at the time). The company will pay no commitment fees.b. On October 1, borrowed $14 million cash from Second Commercial Bank under the line of credit and issued a five-monthpromissory note. Interest at the prime rate of 12% was payable at maturity. Management planned to issue 10-year bonds inFebruary to repay the note.c. Received $4,800 of refundable deposits in December for reusable containers used to transport and store chemical-basedproducts.d. For the September-December period, sales on account totaled $4,700,000. The state sales tax rate is 3% and the local sales taxrate is 3%. (This is a summary journal entry for the many individual sales transactions for the period.)e. Recorded the adjusting entry for accrued interest.2025f. In March, paid the entire amount of the note on its March 1 due date, using proceeds from a February issuance of $12.0 million of10-year bonds at face value, along with other available cash.g. The storage containers covered by refundable deposits are expected to be returned during the first nine months of the year. Halfof the containers were returned in March 2025.Required:1. Prepare the appropriate journal entries for items a-g.2. Prepare the current and long-term liability sections of the December 31, 2024, balance sheet. Trade accounts payable on thatdate were $325,000.Complete this question by entering your answers in the tabs below.Required 1Prepare the appropriate journal entries for items a-g.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers inwhole dollars.Required 2View transaction listJournal entry worksheet12Transactiona3Note: Enter debits before credits.45Record opening of checking accounts at Second Commercial Bank andnegotiated a short-term line of credit of up to $17,000,000 at the bank's primerate (12.5% at the time). The company will pay no commitment fees.6General Journal78DebitCredit

Current liabilities refer to the liabilities which must be paid within a year. Current liabilities…

Answered: ober 1, borrowed $14 million cash from…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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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.
A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
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 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. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
Camden Biotechnology began operations in September 2024. The following selected transactions relate to liabilities of the company for September 2024 through March 2025. Camden's fiscal year ends on December 31. Its financial statements are issued in April. 2024 a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $17,000,000 at the bank's prime rate (12.5% at the time). The company will pay no commitment fees. b. On October 1, borrowed $14 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note. Interest at the prime rate of 12% was payable at maturity. Management planned to issue 10-year bonds in February to repay the note. c. Received $4,800 of refundable deposits in December for reusable containers used to transport and store chemical-based products. d. For the September-December period, sales on account totaled $4,700,000. The state sales tax rate is 3% and the…
Camden Biotechnology began operations in September 2018. The following selected transactions relate to liabilities of the company for September 2018 through March 2019. Camden’s fiscal year ends on December 31. Itsfinancial statements are issued in April.2018a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line ofcredit of up to $15,000,000 at the bank’s prime rate (10.5% at the time). The company will pay no commitment fees.b. On October 1, borrowed $12 million cash from Second Commercial Bank under the line of credit and issueda five-month promissory note. Interest at the prime rate of 10% was payable at maturity. Management plannedto issue 10-year bonds in February to repay the note.c. Received $2,600 of refundable deposits in December for reusable containers used to transport and storechemical-based products.d. For the September–December period, sales on account totaled $4,100,000. The state sales tax rate is 3% andthe local sales…
The following selected transactions relate to liabilities of United Insulation Corporation. United’s fiscal year ends on December 31. 2024 January 13 Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $27.5 million at the bank’s prime rate. February 1 Arranged a three-month bank loan of $5.2 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 7% was payable at maturity. May 1 Paid the 7% note at maturity. December 1 Supported by the credit line, issued $17.3 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 6% discount rate. December 31 Recorded any necessary adjusting entry(s). 2025 September 1 Paid the commercial paper at maturity. Required: Prepare the appropriate journal entries through the maturity of each liability. Note: Do not round intermediate calculations. If no entry is…
Camden Biotechnology began operations in September 2021. The following selected transactions relate to liabilities of the company for September 2021 through March 2022. Camden's fiscal year ends on December 31. Its financial statements are issued in April. 2021 a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $31,000,000 at the bank's prime rate (9.5% at the time). The company will pay no commitment fees. b. On October 1, borrowed $28 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note. Interest at the prime rate of 9% was payable at maturity. Management planned to issue 10-year bonds in February to repay the note. c. Received $2,700 of refundable deposits in December for reusable containers used to transport and store chemical-based products. d. For the September-December period, sales on account totaled $5,040,000. The state sales tax rate is 3% and the local…
The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31. 2024 January 13 Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $27.0 million at the bank's prime rate. February 1 Arranged a three-month bank loan of $6.6 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 13% was payable at maturity. May 1 Paid the 13% note at maturity. December 1 Supported by the credit line, issued $16.3 million of commercial paper on a nine - month note. Interest was discounted at Issuance at a 12% discount rate. December 31 Recorded any necessary adjusting entry(s). 2025 September 1 Paid the commercial paper at maturity. Required: Prepare the appropriate journal entries through the maturity of each liability.
Camden Biotechnology began operations in September 2024. The following selected transactions relate to liabilities of the company for September 2024 through March 2025. Camden's fiscal year ends on December 31. Its financial statements are issued in April. 2024 a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $19,000,000 at the bank's prime rate (12.5% at the time). The company will pay no commitment fees. b. On October 1, borrowed $16 million cash from Second Commercial Bank under the line of credit and issued a five- month promissory note. Interest at the prime rate of 12% was payable at maturity. Management planned to issue 10-year bonds in February to repay the note. c. Received $3,500 of refundable deposits in December for reusable containers used to transport and store chemical-based products. d. For the September-December period, sales on account totaled $4,140,000. The state sales tax rate is 3% and the…
View transaction list Journal entry worksheet 2 Transaction f-2 3 Record entry 5 Notes payable Interest expense Interest payable Cash In March, paid the entire amount of the note on its March 1 due date, using proceeds from a February issuance of $17.5 million of 10-year bonds at face value, along with other available cash. Record the payment of the notes payable. Note: Enter debits before credits. General Journal 6 Clear entry 7 8 Debit 20,000,000 Credit View general journal

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