On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31, 2018, the business should record A. interest payable of $900. B. note receivable of $18,000. C. cash payment of $18,000. D. nothing. ( The note is already on teh books.

On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31, 2018, the business should record A. interest payable of $900. B. note receivable of $18,000. C. cash payment of $18,000. D. nothing. ( The note is already on teh books.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Record the journal entries for Bank’s Hardware Store for the following transactions. If an amount…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On March 1, Year 1, a company loans cash to another company and accepts a note in return. The terms…

A: 1. Journal Entry for the LoanWhen the company makes the loan and accepts the note in return on March…

Q: Kinsella Seed borrowed $207,000 on October 1, 2023, at 10% interest. The interest and principal are…

A: Journal entries are used to record the accounting transactions in chronological order under double…

Q: Sylvestor Systems borrows $185,000 cash on May 15 by signing a 150-day, 7%, $185,000 note. 1. On…

A: Journal: Recording of a business transactions in a chronological order.

Q: ired 2B rest at turity ure? Required 2B General Journal

A: Answer : Note mature date = 12 October 15 May + 150 days = 12 Oct. 16 Days remaining from May + 30…

Q: On September 1, 2021, Allied Moving Corp. borrows $90,000 cash from First National Bank. Allied…

A: In this question, we need to record the issue of notes payable. By issue of notes payable, the…

Q: On January 1, 2024, a business borrowed $12,000 on a five-year, 8% note payable. At December 31,…

A: INTEREST PAYABLE Interest on Note is Computed on Simple Interest Basis. Interest on Notes Payable is…

Q: . Journalize all entries for Symphony Bank related to the note for 2018 and 2019.

Q: MCM Company issued a note receivable to a customer on September 1, 2020. The face value of the note…

A: Note receivable is considered as a negotiable instrument. It represents the claim amount due on the…

Q: On September 1, 2024, Allied Moving Corporation borrows $100,000 cash from First National Bank.…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: entry to record the pledge of accounts receivable

A: Pledge is the lien created on some assets so as to forfeit those assets in the event of non-payment…

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: Definition: Liabilities: The claims creditors have over assets or resources of a company are…

Q: User During 2024, Teal Co. borrowed cash from Martinez Company by issuing notes payable as follows:…

A: The journal entry refers to the posting of business transactions in the books of accounts. The…

Q: Patrick Trash Haulers borrowed 42,000 on June 1, 2020. The loan had an interest rate of 5%. The…

A: Notes payable are promissory notes and negotiable instruments. In this one party agrees to pay a…

Q: Accounting for Notes Receivable—Honoured and Dishonoured On November 30, 2018, Tucker Products…

A: 1. Date accounts & explanation debit credit 2018 nov 30 Notes receivable 75000 Sales…

Q: C.S. Oriole Company had the following transactions involving notes payable. July 1, 2022 Borrows…

A: Prepare the journal entries: Date Accounts title and explanation Debit ($) Credit ($) 1-Jul-22…

Q: Kelly Jones and Tami Crawford borrowed $12.000 on a 7-month, 6% note from Gem State Bank to open…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: at the end of each month with the first installment due on Ja ired: d the issuance of the note…

A: Answer : Date Journal Debit Credit January 1,2024 Cash a/c Dr. $32,000 To notes payable…

Q: Robert and Michael borrowed $12,000 on a 7-month, 6% note from Gem State Bank to open their…

A: A journal entry is a record of a financial transaction in accounting. It is the first step in the…

Q: Sunland Company had the following transactions involving notes payable. July 1, 2022 Borrows…

A: Note payable is a kind of loan which is repaid after certain period of time with specific rate of…

Q: On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month, $120,000,…

A: Accrued Interest means the Interest which is already due but not paid with in the specific due…

Q: March 30 Loaned an officer of the company $30,000 and received a note requiring principal and…

A: Journal entries are the first step of accounting. All day to day transaction and events such as…

Q: A business borrowed $69,372

A: Solution: Date Particulars Debit Credit March 31 Notes payable $69,372 Interest…

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: given that, January 1, 2018, Bank's Hardware issues a note with a principal amount of $560,000 rate…

Q: E10.1 (LO 1), AP C.S. Lewis Company had the following transactions involving notes payable. July 1,…

A: Note payable: Note payable also called promissory note. It is a legal instrument in which one party…

Q: On January 1, 2018, a business borrowed $15,000 on a five-year, 6% note payable. At December 31,…

A: On December 31, 2018, entry will be passed for booking of interest accrued for the year 2018.…

Q: Arvan Patel is a customer Bank's Hardware Store. For Mr. Patel's latest purchase on January 1, 2018,…

A: The answer is as fallows

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: Skysong, Inc. had the following transactions involving notes payable. July 1, 2022 Borrows…

A: Interest accrued on Dec. 31, 2022 = (52500*8%*6/12)+(63000*6%*2/12) = $2100 + 630 = $2730

Q: C.S. Crane Company had these transactions involving notes payable. July 1, 2022 Nov. 1, 2022 Dec.…

A: Notes payable, also known as promissory notes, are a type of debt that a business or individual…

Q: n November 12, 2021, Jones Corporation borrows money at James National Bank by issuing a $10,000, 3…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: elly Jones and Tami Crawford borrowed $10,500 on a 7-month, 8% note from Gem State Bank to open…

A: given that, loan amount = $10500 period of loan = 7months rate of interest on loan = 8%

Q: orrows $62,000 from Lyon County St repares adjusting entries. ays principal and interest to Lyon Cou…

A: Answer : Prepare journal entries for each of the transactions

Q: Selkirk Company obtained a $16,000 note receivable from a customer on January 1, 2024. The note,…

A: The objective of the question is to prepare the journal entries required on February 28, 2024, to…

Q: Sylvestor Systems borrows $174,000 cash on May 15 by signing a 90-day, 6%, $174,000 note. 1. On what…

A: Lets understand the basics.Notes payable an instrument issued by the borrower to the lender. This…

Q: Keesha Co. borrows $100,000 cash on November 1 of the current year by signing a 150-day, 10%,…

A: Notes Payable: Known as long-term obligations, notes payable represent the money a firm owes to its…

Q: S. Sunland Company had the following transactions involving notes payable. July 1, 2025 Nov. 1, 2025…

A: Note payable is a kind of loan that is repaid after a certain period of time with a specific rate of…

Q: Required information [The following information applies to the questions displayed below.] On April…

A: Note payable is a financial instrument used to borrow money from the financial market. The interest…

Q: On October 1, 2025, Conway, Inc. borrowed $220,000 by signing a nine-month, 10% note payable.…

A: Note Payable was signed on 01 Oct 2025 for = 220000 Interest Rate = 10% Total Interest =…

Q: On November 25 of the current year, a company borrows $8,000 cash by signing a 90-day, 5% note…

A: Solution:-a Computation of the accrued interest payable on December 31 of the current year as…

Q: Vinubhai

A: Certainly! Let's break down the scenario step by step: 1. **Background and Terms of the Note:**…

Q: Oliver Industries borrowed $100,000 from the bank signing a 6%, one year note on June 1, 2022.…

A: The journal entries are prepared to record the transactions on a regular basis. The adjustment…

Q: Required: the adjusting entry on December 31, 2020, will show a credit to interest payable for...

A: Adjusting entry: Adjusting journal entry is made at the end of the fiscal period to reflect the…

Q: On April 1, 2018, Audrey Company assigned accounts receivable totaling P400,000 as collateral on a…

A: Journal Entries

Q: Arvan Patel is a customer of Bank's Hardware Store. For Mr. Patel's latest purchase on January 1,…

A: Annual Interest revenue = $490,000*11% Annual Interest revenue = $53,900

Q: Danali Corporation borrowed $400,000 on October 1. The note carried a 13 percent interest rate with…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Question

100%

On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31, 2018, the business should record

A. interest payable of $900.

B. note receivable of $18,000.

C. cash payment of $18,000.

D. nothing. ( The note is already on teh books.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Working:

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Example 4 (Notes Receivable): On November 30, 2020, James Co. lent money to Scott Co. and issued a 5-month, $120,000, 8% note receivable. Scott paid James the full amount of interest and principal on April 30, 2021. What is the journal entry for James Co. to record the issuance of the note receivable? What is the end-of-year adjusting journal entry for James Co. to record interest revenue earned as of December 31?
26 )
LARA Company secured a bank loan of $ 90,000, on 1/4/2020. In return, it signed a 10 month, 6%, note payable. LARA Co. closes its accounts annually, on December 31 of every year. The loan and total interest are to be paid to the bank at the end of the loan term. Required: the adjusting entry on December 31, 2020, will show a credit to interest payable for.
Lewis Company had the following transactions involving notes payable. July 01, 2022 ... Borrows $50,000 from First Bank signing a 9-month, 8% note. Nov 01, 2022 ... Borrows $60,000 from Lyon Bank signing a 3-month, 6% note. Dec 31, 2022 ... Prepares annual adjusting entries. Feb 01, 2023... Pays principal and interest to Lyon Bank. Apr 01, 2023... Pays principal and interest to First National Bank. July 01 2022 Nov 01 2022 Dec 31 2022 Feb 01 2023 Apr 01 2023 On day note is created - is there interest exp? Or just the principal? DR 8% int $ DR 6% int $ CR Total $ 2 diff entries! A single CR to for each entry. Each entry pays note principal (can't be more), PLUS interest (and any publ from adj). Interest calc: Principal x Interest % = a full years int exp. BUT, notes often less than a full year. "Term" (length) of the note tells how many of the 12 months (or 365 days) apply. Eliminate any Int Pobl if ADJ were needed cuz some INT EXP is 2022, and some is 2023.
1.Suppose, on September1, 2019 Fido Corporation borrows $30,000 from its bank for a period of 8 months at an annual interest rate of 5%. Please do the following journal entries. a) September 1, 2019 Fido corporation borrows $30,000 at an interest rate of 5% for 8 months Date Debit Credit Db Cr b) Adjustment entry at year end on December 31. 2019 to record for the interest owed. Date Debit Credit Db Cr c) Payment of the note on May 1, 2020. Date Debit Credit Db Cr
Kelly Jones and Tami Crawford borrowed $10,500 on a 7-month, 8% note from Gem State Bank to open their business, Oriole’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. Prepare the entry to accrue the interest on June 3 Date Account Titles and Explanation Debit Credit June 30
On December 1, 2022, Old Car Co. borrowed money at the bank by signing a 90-day non-interest-bearing note for $30,000 that was discounted at 10%. Which of the following entries is correct?
Question. Jamaica Corporation carried out the following transactions involving note payable. During the fiscal year ended December 31, 2020. Aug 6 Borrowed $ 15,200 from Tony Stark, issuing to him a 45 da, 14% note payable. Sept. 16 Purchased office equipment from Ikea Company. The invoice amount was $18,800 and Ikea Company agreed to accept as full payment a 3-month, 15% note for the invoice amount. Sept. 20 Paid Tony Stark note plus accrued interest. Nov.1 Borrowed $ 2,35,000 from Nation Commercial Bank at an interest rate of 12% per annum; signed a 90-days note payable for $ 2,42,256, which included a $7,056 interest charge in the face amount. Dec.1 Purchased merchandise in the amount of $13,000 from Stephens & Co. Gave in settlement a 60-day note nearing interest at 15% (Perpetual inventory system is deployed). Dec. 16 The $18,800 note payable to Ikea Company matured today. Paid the interest accrued and issued new 30-days, 12% note to replace the maturing…
C.S. Ivanhoe Company had the following transactions involving notes payable. July 1, 2022 Borrows $77,000 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2022 Borrows $80,000 from Lyon County State Bank by signing a 3-month, 6% note. Dec. 31, 2022 Prepares adjusting entries. Feb. 1, 2023 Pays principal and interest to Lyon County State Bank. Apr. 1, 2023 Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023 enter an account title enter a debit amount enter a credit amount enter an account title enter a…
Presley Supply Co. has the following transaction related to notes receivable during the last 2 months of 2020. Nov. 1 Loaned $30,000 cash to Logan Ransey on a 1-year, 10% note. Dec. 11 Sold goods to be Joe Noland, Inc., receiving a $9,000, 90-day, 8% note. 16 Received a $4,000, 6-month, 9% note in exchange for Jane Brock's outstanding accounts receivable. 31 Accrued interest revenue on all notes receivable. (a) Your Answer Correct Answer (Used) Your answer is partially correct. Journalize the above transactions for Presley Supply Co. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round interest to the nearest dollar.) (b) Date Account Titles and Explanation Nov. 1 Notes Receivable Cash Dec. 11 Notes Receivable Sales Revenue 16 Notes Receivable Accounts Receivable 31 Interest Receivable Interest Revenue eTextbook and Media Solution List of Accounts Debit 30000 9000 4000 667 Credit 30000 9000 4000 667 Attempts: 3 of 3 used Record the…
Please help me
Selkirk Company obtained a $24,000 note receivable from a customer on January 1, 2021. The note, along with interest at 8%, is due on July 1, 2021. On February 28, 2021, Selkirk discounted the note at Unionville Bank. The bank's discount rate is 10%. Required: Prepare the journal entries required on February 28, 2021, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale. (do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). Tab 1) Record the accrued interest earned. Tab 2) Record the discounting of note receivable. Date General Journal Debit Credit February 28, 2021 ____________________________ ___________ ____________ _____________________________ ____________ ____________…