On December 31, 2025, Bonita Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Bonita Co. agreed to accept a $328,100 zero-interest-bearing note due December 31, 2027, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Bonita is much more creditworthy and has various lines of credit at 6%. (a) Prepare the journal entry to record the transaction of December 31, 2025, for the Bonita Co. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to O decimal places, eg. 5,275. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries) Account Titles and Explanation Date Dec 31, 2025 Debit Credit
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- On December 31, 2020, Larkspur Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Larkspur Co. agreed to accept a $ 252,100 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Larkspur is much more creditworthy and has various lines of credit at 6%.Click here to view factor table.On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%. Instructions a. Prepare the journal entry to record the transaction of December 31, 2020, for the Ed Abbey Co. b. Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2021. c. Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2022.On December 31, 2025, Sheridan Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Sheridan Co. agreed to accept a $309,400 zero-interest-bearing note due December 31, 2027, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sheridan is much more creditworthy and has various lines of credit at 7%. (a) Prepare the journal entry to record the transaction of December 31, 2025, for the Sheridan Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Dec. 31, 2025 Account Titles and Explanation Debit Credit
- On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%. Instructions a. Prepare the journal entry to record the transaction of December 31, 2020, for the Ed Abbey Co. b. Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2021. c. Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2022. *Explained step by step please.On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%. For step 1, why is it worked out 1/1.1 and answer divided by 1.1 to get 0.826446? Can you explain it to me step by step please. It is PV at 10% for end of year 2. I am having trouble understanding the process. Can you please explain it to me?By December 31, 2017, Culver Corporation had performed a significant amount of environmental consulting services for Sunland Company. Sunland Company was short of cash, and Culver Corporation agreed to accept a $182,000, non–interest-bearing note due December 31, 2019, as payment in full. Sunland Company is a bit of a credit risk and typically borrows funds at a rate of 12%. Culver Corporation is much more creditworthy and has various lines of credit at 8%. Culver Corporation reports under IFRS. The tables in this problem are to be used as a reference for this problem. Prepare the journal entry to record the transaction on December 31, 2017, for Culver Corporation. Assuming Culver Corporation’s fiscal year end is December 31, prepare the journal entry required at December 31, 2018. Assuming Culver Corporation’s fiscal year end is December 31, prepare the journal entry required at December 31, 2019. What are the amount and classification of the note on Culver Corporation’s statement of…
- (Notes Receivable with Unrealistic Interest Rate) On December 31, 2015, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Abbey is much more creditworthy and has various lines of credit at 6%.Instructions(a) Prepare the journal entry to record the transaction of December 31, 2015, for the Ed Abbey Co.(b) Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2016.(c) Assuming Ed Abbey Co.’s fiscal year-end is December 31, prepare the journal entry for December 31, 2017.Read the following information to answer questions 2.1 - 2.2. LA Fashion has credit sales of $6,400,000 for the financial year ending June 30, 2021, and estimates at the end of the financial year that five per cent of accounts receivable will not be received. Accounts receivable total $3,100,000. The corporation uses the allowance method to account for bad debts, based on the percentage of receivables approach.Coyote reported $1,200,000 of credit sales in 2022. Based on its prior experience, it was estimated that 1% of Coyote’s credit sales will not be collectible. On 11/4/2022, Coyote wrote off $700 of Accounts Receivable from a customer who was in financial difficulty. Instructions: Prepare any necessary journal entries for bad debt expenses for 2022 and accounts receivable written off on 11/4/2022.
- Amazon company has accounts receivable totaling $850,000 and an Allowance for doubtful Accounts balance of $60,000. The company will have to write off an uncollectable receivable in the amount of $5,000. Required: What will be the effect on bad debt expense of writing off this accounts receivable? Explain.Company A is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a loan. They owe the supplier $23345, and they can borrow the money from Bank A, which has offered to lend the firm $23345 for 2 month(s) at an APR (compounded) of 15%. The bank will require a (no-interest) compensating balance of 7% of the face value of the loan and will charge a $216 loan origination fee, which means Hand-to-Mouth must borrow even more than the $23345. Compute the EAR of the loan. Give typing answer with explanation and conclusionTwitter Corporation needs $225,000 to pay its bills. Their bank offers a one-year 12 percent simple interest loan that requires a 25 percent compensating balance to be maintained with the bank. Musk currently holds no funds at the lending bank. How much must Twitter borrow to ensure that it has $225,000 to pay its bills? (represent your numeric result with no decimal places)