On December 31, 2025, Cheyenne Company has $6,955,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2026. On December 28, 2025, Cheyenne enters into a refinancing agreement with Gotham that will permit it to borrow up to 57% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,954,000 in May to a high of $7,953,000 in October during the year 2026. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2030. Cheyenne's December 31, 2025, balance sheet is issued on February 15, 2026. Prepare a partial balance sheet for Cheyenne at December 31, 2025, showing how its $6,955,000 of short-term debt should be presented. (Enter account name only and do not provide descriptive information.) CHEYENNE COMPANY Partial Balance Sheet []

On December 31, 2025, Cheyenne Company has $6,955,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2026. On December 28, 2025, Cheyenne enters into a refinancing agreement with Gotham that will permit it to borrow up to 57% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,954,000 in May to a high of $7,953,000 in October during the year 2026. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2030. Cheyenne's December 31, 2025, balance sheet is issued on February 15, 2026. Prepare a partial balance sheet for Cheyenne at December 31, 2025, showing how its $6,955,000 of short-term debt should be presented. (Enter account name only and do not provide descriptive information.) CHEYENNE COMPANY Partial Balance Sheet []

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

See similar textbooks

Similar questions

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 January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.
Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)
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.
On December 31, 2025, Sarasota Company has $7,070,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2026. On December 28, 2025, Sarasota enters into a refinancing agreement with Gotham that will permit it to borrow up to 56% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $6,080,000 in May to a high of $8,062.000 in October during the year 2026. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2030. Sarasota's December 31, 2025, balance sheet is issued on February 15, 2026. Prepare a partial balance sheet for Sarasota at December 31, 2025, showing how its $7,070,000 of short-term debt should be presented. (Enter account name only and do not provide descriptive information) SARASOTA COMPANY Partial Balance Sheet
On December 31, 2020, Novak Company has $6,975,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Novak enters into a refinancing agreement with Gotham that will permit it to borrow up to 67% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,983,000 in May to a high of $7,983,000 in October during the year 2021. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2025. Novak's December 31, 2020, balance sheet is issued on February 15, 2021. Prepare a partial balance sheet for Novak at December 31, 2020, showing how its $6,975,000 of short-term debt should be presented. (Enter account name only and do not provide descriptive information.) NOVAK COMPANY Partial Balance Sheet V $
On December 31, 2020, Culver Company has $7,051,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Culver enters into a refinancing agreement with Gotham that will permit it to borrow up to 65% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $6,052,000 in May to a high of $8,049,000 in October during the year 2021. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2025. Culver’s December 31, 2020, balance sheet is issued on February 15, 2021.Prepare a partial balance sheet for Culver at December 31, 2020, showing how its $7,051,000 of short-term debt should be presented. (Enter account name only and do not provide descriptive information.)
On December 31, 2020, Coronado Company has $6,976,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Coronado enters into a refinancing agreement with Gotham that will permit it to borrow up to 64% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,984,000 in May to a high of $7,970,000 in October during the year 2021. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2025. Coronado's December 31, 2020, balance sheet is issued on February 15, 2021. Prepare a partial balance sheet for Coronado at December 31, 2020, showing how its $6,976,000 of short-term debt should be presented. (Enter account name only and do not provide descriptive information.) CORONADO COMPANY Partial Balance Sheet %24
On December 31, 2020, Culver Company has $7,051,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Culver enters into a refinancing agreement with Gotham that will permit it to borrow up to 65% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $6,052,000 in May to a high of $8,049,000 in October during the year 2021. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2025. Culver’s December 31, 2020, balance sheet is issued on February 15, 2021.Prepare a partial balance sheet for Culver at December 31, 2020, showing how its $7,051,000 of short-term debt should be presented
On December 31, 2020, Oriole Company has $6,941,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Oriole enters into a refinancing agreement with Gotham that will permit it to borrow up to 52% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5,949,000 in May to a high of $7,947,000 in October during the year 2021. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2025. Oriole’s December 31, 2020, balance sheet is issued on February 15, 2021.Prepare a partial balance sheet for Oriole at December 31, 2020, showing how its $6,941,000 of short-term debt should be presented. (Enter account name only and do not provide descriptive information.) ORIOLE COMPANYPartial Balance Sheetchoose the accounting period select…
On December 31, 2020, Holmes Company has $7,000,000 of short-term debt in the form of notes payable to Gotham State Bank due in 2021. On December 28, 2020, Holmes enters into a refinancing agreement with Gotham that will permit it to borrow up to 60% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $6,000,000 in May to a high of $8,000,000 in October during the year 2021. The interest cost of the maturing short-term debt is 15%, and the new agreement calls for a fluctuating interest at 1% above the prime rate on notes due in 2025. Holmes’s December 31, 2020, balance sheet is issued on February 15, 2021.InstructionsPrepare a partial balance sheet for Holmes at December 31, 2020, showing how its $7,000,000 of short-term debt should be presented, including footnote disclosure.
On December 31, 2023, Concord Corporation has $8.21 million of short-term debt in the form of notes payable that are due in 2024 to Provincial Bank. On January 28, 2024, Concord enters into a refinancing agreement with the bank that permits it to refinance its debt by up to 63% of the gross amount of its accounts receivable. Receivables are expected to range between a low of $5.3 million in February and a high of $8.0 million in October during 2024. The interest cost of the maturing short-term debt is 12%, and the new agreement calls for a fluctuating interest rate at 2% above the prime rate (currently prime is 8%) with the notes due in 2025. Concord informed the bank that it wishes to refinance as much of its debt as possible prior to its December 31, 2023 balance sheet being issued on February 15, 2024. (a) Assuming that Concord follows ASPE, prepare a partial balance sheet for Concord at December 31, 2023, that shows how its $8.21 million of short-term debt should be presented.…