Use the following to answer questions 6 – 10 On August 1“, FLY Tech, an Airline maintenance company, borrows $300,000 cash from Bank of America for working capital. FLY signs a 1 year, 3% promissory note. Interest is payable when the note is paid off. FLY's vear-end is December 31
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- Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
- Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?Quick Tire and Lube received a 120-day, 8% note for $72,000, dated April 9 from a customer on account. Assume 360 days in a year. a. Determine the due date of the note. b. Determine the maturity value of the note.$fill in the blank 0578eff5f02bffe_2 c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Aug. 7 fill in the blank 7c1e32ffb038033_2 fill in the blank 7c1e32ffb038033_3 fill in the blank 7c1e32ffb038033_5 fill in the blank 7c1e32ffb038033_6 fill in the blank 7c1e32ffb038033_8 fill in the blank 7c1e32ffb038033_9Cube Ice Company received a 120-day, 10% note for $96,000, dated April 9 from a customer on account. Assume 360 days in a year. a. Determine the due date of the note. b. Determine the maturity value of the note.$fill in the blank f3b771fe205d07f_2 c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Accounts Receivable Cash Interest Receivable Interest Revenue Notes Receivable Unearned Interest Aug. 7 fill in the blank 332b64fd401df83_2 fill in the blank 332b64fd401df83_3 fill in the blank 332b64fd401df83_5 fill in the blank 332b64fd401df83_6 fill in the blank 332b64fd401df83_8 fill in the blank 332b64fd401df83_9
- Bramble Corp. lends Sheffield Corp. $50400 on April 1, accepting a four-month, 9% interest note. Bramble Corp. prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared? O Interest Receivable 378 Interest Revenue 378 Interest Revenue 80 Cash Note Receivable Cash Interest Receivable Interest Revenue Type here to search 378 50400 1134 S 378 50400 1134 17K Cheap Inc. borrowed $95,000 on October 1 by signing a note payable to Scotiabank. The interest expense for each month is $554. The loan agreement requires Cheap Inc. to pay interest on December 31. 1. Make Scotiabank's adjusting entry to accrue interest revenue and interest receivable at October 31, at November 30, and at December 31. Date each entry and include its explanation. 2. Post all three entries to the Interest Receivable account. You need not take the balance of the account at the end of each month. 3. Record the receipt of three months' interest at December 31. 1. Make Scotiabank's adjusting entry to accrue interest revenue and interest receivable at October 31, at November 30, and at December 31. Date each entry and include its explanation. (Record debits first, then credits. Enter explanations on the last line.) Start by making the adjusting entry to accrue monthly interest revenue for October. Date Oct Journal Entry Accounts and Explanation Debit CreditOn March 1, Year 1, a company loans cash to another company and accepts a note in return. The terms of the note are provided below. Issue Date Principal Rate Maturity Date March 1, Year 1 120,000 10% March 1, Year 4 Required: 1. Prepare the journal entry to be made when the company makes the loan and accepts the note in return. 2. Calculate the interest revenue to be recorded at the end of each year the note is outstanding. 3. Prepare the journal entries to accrue the interest receivable for each year the note is outstanding. 4. Prepare the journal entry to record receiving the cash at the note's maturity.
- Below are the details of a loan Levis' obtained from their bank on November 1, 2021. 3 Required: Prepare the following journal entries: a. On November 1, 2021 Levis' borrowed $200,000 from a bank with a five year term at an interest rate of 7% per annum. 6 7 Date ACCOUNT TITLES Debit Credit 8. 1-Nov 9 10 b. The first loan payment is due at the end of the month in the amount of $3,800. This payment includes 11 $1,440 of interest. 12 13 Date ACCOUNT TITLES Debit Credit 14 30-Nov 15 c. Total loan payments made in 2022 will be $600. It is determined that $36,000 of this amount will 8 go towards the principal of the loan. 9 Date ACCOUNT TITLES Debit Credit 31-DecMartinez Co. borrowed $58,220 on March 1 of the current year by signing a 60-day, 11%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment should include a Oa. debit to Interest Payable for $1,067. b. debit to Interest Expense for $1,067. Oc. credit to Cash for $58,220. Od. credit to Cash for $64,624.On March 1, Felton Company borrows $90,000 from Ottawa State Bank by signing a 6-month, 8%, interest-bearing note. Instructions Prepare the necessary entries below associated with the note payable on the books of Felton Company. (a) Prepare the entry on March 1 when the note was issued. (b) Prepare the entry to record payment of the note at maturity. Essay Toolbar navigation B I U S E E = v A