On October 1, 2019, Muscat Company borrowed OMR 8,000 cash by signing a note payable due in one year at 8% interest. Interest is due when the principal is paid. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: Select one: O a. Interest Expense 160 Interest Payable 160 Ob. Interest Expense 8,000 Interest Payable 8,000 O c. Interest Expense .640 Interest Payable 640 O d. None of the answers are correct e. Cash 8,000 Notes Payable 8,000

On October 1, 2019, Muscat Company borrowed OMR 8,000 cash by signing a note payable due in one year at 8% interest. Interest is due when the principal is paid. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: Select one: O a. Interest Expense 160 Interest Payable 160 Ob. Interest Expense 8,000 Interest Payable 8,000 O c. Interest Expense .640 Interest Payable 640 O d. None of the answers are correct e. Cash 8,000 Notes Payable 8,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

SPENCER CORP BORROWED $300,000 FROM NATIONAL BANK ON MAY 31, 2019. THE ONE YEAR, 7% NOTE REQUIRED REQUIRED SPENCER TO RECORD WHAT INTEREST EXPENSE FOR THE YEAR ENDED DECEMBER 31, 2019? $21,000 $0 $12,250 O $14,000
Keesha Company borrows $115,000 cash on November 1 of the current year by signing a 180-day, 11%, $115,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 On what date does this note mature? (Assume that February has 28 days.) On what date does this note mature?
Tangent Company borrowed $100,000 from the bank signing an 8%, 6-month note on September 1. Principal and interest are payable to the bank on March 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on November 30, would be: A) debit Interest Expense, $8,000; credit Interest Payable, $8,000. B) debit Interest Expense, $667; credit Interest Payable, $667. C) No adjusting entry is needed on November 30. D) debit Interest Expense, $2,667; credit Interest Payable, $2,667.
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%. Wha is the accumulated interest entry if 9 months have passed since note establishment? $1 $2,000,000 $9,360 $2,992.50
Windsor Company borrowed $49,200 on November 1, 2025, by signing a $49,200, 10%, 3-month note. Prepare Windsor's November 1,2025, entry; the December 31, 2025, annual adjusting entry; and the February 1, 2026, entry. (If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
ABC Company received a ten-month, $18,000, 4% note from XYZ Corporation on April 1, 2020 to replace an accounts receivable. Assuming all necessary adjusting entries were made at year end, December 31, 2020, the entry ABC makes on the maturity date would include a: credit to interest receivable for $540. credit to note receivable for $18,600 credit to interest revenue for $600 A. В. С. D. debit to interest revenue for $60 Е. credit to interest revenue for $720
On July 1, 2019, Maricris Company received a P20,000 promissory note from Jordyn Company. The annual interest rate is 5%. Principal and interest are paid in cash at the maturity date of June 30, 2020. If Maricris’s fiscal year ends September 30, 2019, an adjusting entry is needed to:? Increase notes receivable by P250 Increase interest revenue by P1,000 Increase interest receivable by P250 Increase notes receivable by P1,000
Sheffield Corp. lends Riverbed industries $54000 on August 1, 2022, accepting a 9-month, 15% interest note. If Sheffield Corp. prepares its financial statements as of December 31, 2022, what adjusting entry must it make? Accounts Receivable 3375 Interest Receivable 3375 Interest Receivable 3375 Interest Revenue 3375 O Cash 3375 Interest Revenue 3375 O Notes Receivable 3375 Interest Revenue 3375
Recording Accrued Interest Expense Alaska Inc. borrowed $16,000 by signing a one-year note payable on November 1, 2020. The note bears interest at 10% and interest is payable upon maturity of the note. a. Record this financing transaction on November 1, 2020. b. Record the year-end adjusting entry required on December 31, 2020. Hint: Prorate the annual interest of 10% for two months. c. Record the entry to repay the note on November 1, 2021. Note: Round your answers to the nearest dollar. For example, enter 50 for 50.49 and enter 51 for 50.5
16. On October 1, 2020, Zachary's Balloons borrowed S4,000 on a 12%, one-year note payable. Interest was payable semiannually. A correct adjusting entry was made on December 31, 2020, and a correct reversing entry was made on January 1, 2021. The entry that should be made on March 31, 2021, is a. Interest Payable 240 Cash 240 b. Interest Expense Interest Payable 120 120 Cash 240 c. Interest Expense 240 Cash 240 d. Interest Expense 120 Cash 120
On October 1, 2022, Bramble Company issued an $828000, 9%, 9-month interest-bearing note. If the Bramble Company is preparing financial statements at December 31, 2022, the adjusting entry for accrued interest will include a: O credit to Notes Payable of $18630. O credit to Interest Payable of $37260. O debit to Interest Expense of $27945. O debit to Interest Expense of $18630
Help me to entry particular