Recording Entries for Interest-Bearing and Noninterest-Bearing Notes Anne Taylor Company borrowed cash on August 1 of Year 1, by signing a $66,600 (face amount), one-year note payable, due on July 31 of Year 2. The accounting period of Anne Taylor ends December 31. Assume an effective interest rate of 11%. Interest-Bearing Note a. How much cash should Anne Taylor Company receive from the note on August 1 of Year 1, assuming the note is an interest-bearing note? $ b. Provide the following entries and reporting amounts: 1. August 1 of Year 1, date of the loan. 2. December 31 of Year 1, adjusting entry. 3. July 31 of Year 2, payment of the note • Note: Round your answers to the nearest whole dollar. Account Name Date 1. Aug. 1, Year 1 2. Dec. 31, Year 1 3. July 31, Year 2 To record issue of note. Show Transcribed Text Current liabilities Note Payable To record year-end adjusting entry. To record payment of note. Balance Sheet, Dec. 31 c. What liability amounts should be shown on the December 31 of Year 1 Show Transcribed Text C. Current liabilities C C ➜ $ Balance Sheet, Dec. 31 Year 1 + S Year 1 Dr. Cr. Noninterest-Bearing Note d. Answer (a) and (c) assuming that the note is noninterest-bearing. Use the straight-line method to amortize any discount on note payable. a. How much cash should Anne Taylor Company receive from the note on August 1 of Year 1, assuming the note is a noninterest-bearing note? $ c. What liability amounts should be shown on the December 31 of Year 1 balance sheet? ce sheet?

JOURNAL ENTRIES (NOTE ISSUED FOR BANK LOAN) Prepare general journal entries for the following transactions: July15 Borrowed 5,000 cash from the bank, giving a 60-day non- interest-bearing note. The note is discounted 8% by the bank. Sept.13 Paid the 5,000 note, recognizing the discount as interest expense.

Notes Receivable On September 1, 2016, Dougherty Corp. accepted a six-month, 7%, $45,000 interest-bearing note from Rozelle Company in payment of an account receivable. Doughertys year-end is December 31. Rozelle paid the note and interest on the due date. Required Who is the maker and who is the payee of the note? What is the maturity date of the note? Prepare all necessary journal entries that Dougherty needs to make in connection with this note.

Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of 43,830, beginning on December 31, 20Y2. Journalize the entries to record the following:

Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted the difference to Clear Glass. Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity. 2. Show how the preceding items Would be reported on the December 31, 2019, balance sheet. 3. Next Level What is Clear Glass Companys effective interest rate?

Recording the Sale of Notes Receivable Singer Corporation was involved in the following events in the current year: Required: Prepare the journal entries to record the preceding information on Singers accounting records. Assume that the company does not normally sell its notes. (Assume a 360-day year and round all answers to the nearest penny.)

Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed the following information relating to its receivables: The company has a recourse liability of 700 related to a note receivable sold to a bank. During 2019, credit sales (terms, n/EOM) totaled 2,200,000, and collections on accounts receivable (unassigned) amounted to 1,900,000. Uncollectible accounts totaling 18,000 from several customers were written off, and a 1,350 accounts receivable previously written off was collected. Additionally, the following transactions relating to Blackmons receivables occurred during the year: On December 31, 2019, an aging of the accounts receivable balance indicated the following: Required: 1. Prepare the journal entries to record the preceding receivable transactions during 2019 and the necessary adjusting entry on December 31, 2019. Assume a 360-day year for interest calculations and round calculations to the nearest dollar. 2. Prepare the receivables portion of Blackmons December 31, 2019, balance sheet. 3. Next Level Compute Blackmons accounts receivable turnover in days, assuming a 360-day business year. What is your evaluation of its collection policies? 4. If Blackmon uses IFRS, what might be the heading of the section for the receivables reported in Requirement 2?

On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.

Recording Entries for Interest-Bearing and Noninterest-Bearing Notes Anne Taylor Company borrowed cash on August 1, 2020, and signed a $83,250 (face amount), one-year note payable, due on July 31, 2021. The accounting period of Anne Taylor ends December 31. Assume an effective interest rate of 11%.    Interest-Bearing Note Noninterest-Bearing Note a. How much cash should Anne Taylor Company receive on the note, assuming the note is an interest-bearing note? Answer   b. Provide the following entries:   August 1, 2020, date of the loan. December 31, 2020, adjusting entry. July 31, 2021, payment of the note.   Note: List multiple debits or credits (when applicable) in alphabetical order.Note: Round your answers to the nearest whole dollar.   Date Account Name Dr. Cr. 1. Aug. 1, 2020 Answer Answer Answer     Answer Answer Answer 2. Dec. 31, 2020 Answer Answer Answer     Answer Answer Answer 3. July 31, 2021 Answer Answer Answer     Answer Answer Answer…

Entries for notes payable A business issued a 120-day, 5% note for $100,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360 days in a year. If an amount box does not require an entry, leave it blank. If required, round yours answers to whole dollar. a. Accounts Payable Notes Payable b. Notes Payable Interest Expense Cash 100,000 100,000 100,000 X