The following note transactions occurred during the year for Zuber Company: On November 25, Zuber issued a 90-day, 129% note payable for $6,000 to Porter Company for merchandise. On December 10, Zuber signed a 120-day, $7,200 note at the bank at 10%. On December 23, Zuber gave Dale, Inc. a $9,000, 10%, 60-day note in payment of its account. Calculate the amount of the necessary interest accrual for each note payable at December 31. (Round to nearest whole dollar.) Interest Accrual Porter Company note $ Bank note Dale, Inc. note o o

The following note transactions occurred during the year for Zuber Company: On November 25, Zuber issued a 90-day, 129% note payable for $6,000 to Porter Company for merchandise. On December 10, Zuber signed a 120-day, $7,200 note at the bank at 10%. On December 23, Zuber gave Dale, Inc. a $9,000, 10%, 60-day note in payment of its account. Calculate the amount of the necessary interest accrual for each note payable at December 31. (Round to nearest whole dollar.) Interest Accrual Porter Company note $ Bank note Dale, Inc. note o o

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Selkirk Company obtained a $15,000 note receivable from a customer on January 1, 2021. The note, along with interest at 9%, is due on July 1, 2021. On February 28, 2021, Selkirk discounted the note at Unionville Bank. The bank’s discount rate is 12%. 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.
On January 1, MM Company borrows $360,000 cash from a bank and in return signs an 8% installment note for five annual payments of $90, 164 each. Analyze transactions involving issuance of the note and its first annual payment, by showing their effects on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction.
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