Provide the right answer Question:Bon Nebo Co. sold 25,000 annual subscriptions of Bjorn 20XXfor $85 during December 2014. These new subscribers willreceive monthly issues, beginning in January 2015. In addition,the business had taxable income of $840,000 during the firstcalendar quarter of 2015. The federal tax rate is 40%. Aquarterly tax payment will be made on April 12, 2015. Preparethe Current Liabilities section of the balance sheet for Bon NeboCo. on March 31, 2015.

Approach to solving the question: The key steps to solve this problem are:1. Calculate the unearned…

Answered: Question: Bon Nebo Co. sold 25,000…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
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?
Current liabilities Bon Nebo Co. sold 11,500 annual subscriptions of Bjorn for $53 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $384,000 during the first calendar quarter of 2016. The federal tax rate is 38%. A quarterly tax payment will be made on April 12, 2016. Prepare the "Current liabilities" section of the balance sheet for Bon Nebo Co. on March 31, 20Y6. Bon Nebo Co. Current Liabilities Section of Balance Sheet March 31, 2016 Line Item Description Current liabilities: Advances on magazine subscriptions $ Federal income taxes payable Total current liabilities Amount
On May 1, 2021, Nees Manufacturing lends $10,000 to Roberson Supply using a 9% note due in 12 months. Nees has a December 31 year-end. Calculate the amount of interest revenue Nees will report in its 2021 and 2022 income statements. a. 2021 = $300; 2022 = $600.b. 2021 = $600; 2022 = $300.c. 2021 = $900; 2022 = $0.d. 2021 = $0; 2022 = $900.
Current Liabilities Bon Nebo Co. sold 11,500 annual subscriptions of Bjorn for $57 during December 2015. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $412,000 during the first calendar quarter of 2016. The federal tax rate is 35%. A quarterly tax payment will be made on April 12, 2016. Prepare the "Current liabilities" section of the balance sheet for Bon Nebo Co. on March 31, 2016. Bon Nebo Co. Current Liabilities Section of Balance Sheet March 31, 20Y6 Current liabilities: Advances on magazine subscriptions Federal income taxes payable Total current liabilities
Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 5% View transaction list Additional information: a. $11,800 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $136,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $150,000 given similar cases in the industry. c. During December, Mackenzie had sales of $720,000. 5% of sales typically require warranty work equal to 25% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $112,500 of the Unearned Revenues remain unearned at December 31, 2023. f. The 120-day note payable was dated November 15, 2023. No 1 $ 6,560…
Current Liabilities Bon Nebo Co. sold 18,500 annual subscriptions of Bjorn for $57 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $664,000 during the first calendar quarter of 20Y6. The federal tax rate is 35%. A quarterly tax payment will be made on April 12, 20Y6. Prepare the “Current liabilities” section of the balance sheet for Bon Nebo Co. on March 31, 20Y6. Bon Nebo Co. Current Liabilities Section of Balance Sheet March 31, 20Y6 Current liabilities: Advances on magazine subscriptions $fill in the blank 1 Federal income taxes payable fill in the blank 2 Total current liabilities $fill in the blank 3
Current liabilitiesBorn Nebo Co. sold 25,000) annual subscriptions of Magazine 20XXfor$85 during December 20Y8. These new subscribers will receive monthlyissues, beginning in January 2019. In addition, the business had taxable income of $840,000 during the first calendar quarter of 2019. The federaltax rate is 40%. A quarterly tax payment will be made on April 12, 2019.Prepare the Current liabilities section of the balance sheet for Bon NeboCo. on March 31, 20Y9.
On September 30, 2022 World Company borrowed P1, 000, 000 on a 9% note payable. The entity paid the first of four quarterly payments of P264, 200 when due on December 31, 2022. 1. What amount should be reported as interest expense for 2022? A. 90, 000 В. 22,500 C. 67,500 D. 30,000 2. On December 31, 2022, what is the carrying amount of the note payable? A. 758, 300 В. 750, 000 С. 825, 800 D. 735, 800
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.
Jane's Don't Company borrowed $201,000 on January 1, 2024, and signed a two-year note bearing interest at 13%. Interest is payable in full at maturity on January 1, 2026. In connection with this note, Jane's should report interest expense at December 31, 2024, in the amount of: Multiple Choice $55,396. $26,130. $52,260. $0.
XYZ Company lent $9,000 at 10% interest on December 1, 2019. The amount plus all interests accrued will be collected after 1 year. At the end of December, which of the following journal entry is required to take up the interest income? Select one: a. Debit Cash $900; Credit Interest Revenue $900 b. Debit Interest Revenue $75; Credit Interest Receivable $75 c. Debit Interest Receivable $900; Credit Unearned Revenue $900 d. Debit Interest Receivable $75; Credit Interest Revenue $75

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