On April 1, 2024, Macomb Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Macomb's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Macomb agrees to lend $470,000 to its supplier using a 12-month, 11% note. Required: Record the following transactions for Macomb Corporation: 1. The loan of $470,000 and acceptance of the note receivable on April 1, 2024. 2. The adjusting entry for accrued interest on December 31, 2024. 3. Cash collection of the note and interest on April 1, 2025.

On April 1, 2024, Macomb Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Macomb's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Macomb agrees to lend $470,000 to its supplier using a 12-month, 11% note. Required: Record the following transactions for Macomb Corporation: 1. The loan of $470,000 and acceptance of the note receivable on April 1, 2024. 2. The adjusting entry for accrued interest on December 31, 2024. 3. Cash collection of the note and interest on April 1, 2025.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On February 1, 2020, M-Way took out a loan from State Bank for $300,000. It was a 2-year note at 5% interest, payable in 24 months with no payments due until then. Immediately, M-Way transferred $150,000 of it to An Co., a company that sells high tech equipment. This represented a 50% down payment on an agreed upon $300k total contract to buy technology equipment. The remainder was put in a money market fund earning 1.2% interest until October 1, 2020 when the final payment was due to An Co. On Oct 1 the remaining money was transferred from M-Way to An Co. Instructions Please prepare journal entries for the transactions described above.
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Could you please help me with this question??? It is really urgent !!! PLEASE!!!! On August 4th Ridge Hill Company sells $700,000 of its accounts receivable to the Cheesecake Factoring Company (CFC). The contractual rights have been transferred to CFC and the company will receive the payments when collected by Ridge Hill. That is, Ridge Hill will still administer the collection of accounts receivable and upon receiving the collection, the company will make payment to CFC. Assume that this transaction meets all three criteria of FASB ASC Topic 860. Below are the relevant information regarding the factoring: • The fee charged for factoring service: $14,000 • Balance retained by CFC: $10,000 Required: 1. Prepare the journal entry to record the transaction assuming that the factoring agreement was without recourse. 2. Prepare the journal entry or entries to record the transaction assuming that the factoring agreement was with recourse. Ridge Hill estimates the recourse obligation at…
Lastly, can you show me how to do this one? 22. In 2018, XYZ, Inc. sold 2,000 beds for $50 each. The beds carry a 2-year warranty for repairs. XYZ estimates that repair costs will average 3% of the total selling price. What amount would be recorded in the warranty liability account as a result of selling the beds during 2018? Assets = Liabilities + Stockholders’ Equity Revenues – Expenses = Net Income
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