On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $21 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. Trico’s year-end is December 31.Required:1. Record the issuance of the note by Trico Technologies.2. Record the appropriate adjustment for the note by Trico on December 31, 2021.3. Record the payment of the note by Trico at maturity.

On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $21 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. Trico’s year-end is December 31.Required:1. Record the issuance of the note by Trico Technologies.2. Record the appropriate adjustment for the note by Trico on December 31, 2021.3. Record the payment of the note by Trico at maturity.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...

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On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $21 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. FirstBanc Corp.’s year-end is December 31.Required:1. Record the acceptance of the note by FirstBanc Corp.2. Record the appropriate adjustment for the note by FirstBanc Corp. on December 31, 2021.3. Record the receipt of cash by FirstBanc Corp. at maturity.
On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $20.5 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 6% promissory note. Interest is payable at maturity. FirstBanc Corp.’s year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below for FirstBanc Corp. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)
On September 1, 2024, Triton Entertainment borrowed $24 million cash to fund a new Fun Park. The loan was made by Nevada Bank under a noncommitted short-term financing arrangement. Triton issued a 9-month, 12% promissory note. Interest was payable at maturity. Triton's fiscal period is the calendar year. Required: 1. Prepare the journal entry for the issuance of the note by Triton. 2. Prepare the appropriate adjusting entry for the note by Triton on December 31, 2024. 3. Prepare the journal entry for the payment of the note at maturity. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions. No 1 Transaction 1 Cash Notes payable 2 2 Interest expense Notes payable 3 3 General Journal > > × Debit Credit 24,000,000 24,000,000 960,000 960,000
On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $19.0 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. Trico’s year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below for Trico Technologies. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)
On November 1, 2021, Quantum Technology, a geothermal energy supplier, borrowed $4 million cash to fund a geological survey. The loan was made by Nevada BancCorp under a noncommitted short-term line of credit arrangement. Quantum issued a nine-month, 9% promissory note. Interest was payable at maturity. Quantum's fiscal period is the calendar year. Required: 1. Prepare the journal entry for the issuance of the note by Quantum Technology. 2. & 3. Prepare the appropriate adjusting entry for the note by Quantum on December 31, 2021 and journal entry for the payment of the note at maturity. (For all requirements, If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Enter your answers in whole dollars.) View transaction list Journal entry worksheet 1 2 Record the issuance of the note by Quantum Technology. Date November 01, 2021 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general…
On November 1, 2021, Quantum Technology, a geothermal energy supplier, borrowed $16 million cash to fund a geological survey. The loan was made by Nevada BancCorp under a noncommitted short-term line of credit arrangement. Quantum issued a nine-month, 12% promissory note. Interest was payable at maturity. Quantum’s fiscal period is the calendar year.Required:1. Prepare the journal entry for the issuance of the note by Quantum Technology.2. Prepare the appropriate adjusting entry for the note by Quantum on December 31, 2021.3. Prepare the journal entry for the payment of the note at maturity.
On November 1, 2018, Quantum Technology, a geothermal energy supplier, borrowed $16 million cash to funda geological survey. The loan was made by Nevada BancCorp under a noncommitted short-term line of creditarrangement. Quantum issued a nine-month, 12% promissory note. Interest was payable at maturity. Quantum’sfiscal period is the calendar year.Required:1. Prepare the journal entry for the issuance of the note by Quantum Technology.2. Prepare the appropriate adjusting entry for the note by Quantum on December 31, 2018.3. Prepare the journal entry for the payment of the note at maturity
On August 1, 2024, Trico Technologies, an aeronautic electronics company, borrows $19.3 million cash to expand operations. The loan Is made by FirstBanc Corporation under a short-term line of credit arrangement. Trico signs a six-month, 9% promissory note. Interest is payable at maturity. FirstBanc Corporation's year-end is December 31. Required: 1. to 3. Record the necessary entries in the Journal Entry Worksheet below for FirstBanc Corporation. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not millions (l.e. 5.5 million should be entered as 5,500,000).) No 1 2 3 Date August 01, 2024 Cash Notes Payable December 31, 202 Interest Expense Interest Payable January 31, 2025 Notes Payable Interest Payable Interest Expense Cash Answer is not complete. General Journal **** X XXXX Debit 19,300,000 723,750✔ 19,300,000 X 723,750 x 144,750 x Credit 19,300,000 723,750 20,168,500
The following selected transactions relate to liabilities of United Insulation Corporation. United’s fiscal year ends on December 31. 2021 Jan. 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 $20 million at the bank’s prime rate. Feb. 1 Arranged a three-month bank loan of $5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity. May 1 Paid the 10% note at maturity. Dec. 1 Supported by the credit line, issued $10 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% discount rate. 31 Recorded any necessary adjusting entry(s). 2022 Sept. 1 Paid the commercial paper at maturity. Required:Prepare the appropriate journal entries through the maturity of each liability. (Do not round intermediate calculations. If no entry is required…
1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month, 6% promissory note. Interest is payable at maturity. Costco's year-end is December 31. 1. Record the issuance of the note by Costco. 2. Record the appropriate adjusting entry for the note by Costco on December 31, 2021. 3. Record the payment of the note by Costco at maturity on May 31, 2022. Date Account Name Debit Credit 9/1 [no1] 12/31 [no1] [no1] 5/31 [no1] [no1] [no1] [no1]
The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31. 2021 Jan. 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 $24.0 million at the bank's prime rate. 1 Arranged a three-month bank loan of $7.6 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 13% was payable at maturity. 1 Paid the 13% note at maturity. 1 Supported by the credit line, issued $10.6 million of commercial paper on a nine-month note. Interest was Feb. Мay Dec. discounted at issuance at a 12% discount rate. 31 Recorded any necessary adjusting entry(s). 2022 Sept. 1 Paid the commercial paper at maturity. Required: Prepare the appropriate journal entries through the maturity of each liability. (If no entry is required for a transaction/event, select "No journal entry required" in the first account…
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.