Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.45%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $10,750.00 and $12,000.00, respectively. On July 30, it made a payment of $ 5,000.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, " - $149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance before Transaction Annual Interest Rate Number of Days Interest Charged Accrued Interest Payment (+) or Advance (-) Principal Amount Balance after Transaction Jul 8 $10,750.00 Jul 30 7.45% Jul 31 7.45% Aug 14 7.45% Aug 31 7.45%

Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.45%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $10,750.00 and $12,000.00, respectively. On July 30, it made a payment of $ 5,000.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, " - $149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance before Transaction Annual Interest Rate Number of Days Interest Charged Accrued Interest Payment (+) or Advance (-) Principal Amount Balance after Transaction Jul 8 $10,750.00 Jul 30 7.45% Jul 31 7.45% Aug 14 7.45% Aug 31 7.45%

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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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.
American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?
A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.45%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $12,500.00 and $10,750.00, respectively. On July 30, it made a payment of $7,500.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance (-) Principal Balance after Amount Transaction Jul 8 $12,500.00 Jul 30 7.45% Jul 31 7.45% Aug 14 7.45% Aug 31 7.45%
Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.25%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $11,250.00 and $12,750.00, respectively. On July 30, it made a payment of $7,250.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. ( Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "$$149.63) (Give all "Number of Days" quantities as fractions with denominator 365.) \table[[Date ,\table[[Balance], [before], [Transaction]], \table[[Annual], [Interest] [Rate]],\table[[Number], [of Days]]\table[[Interest],[ Charged]]\table[[Accrued], [Interest]], \table[[Payment], [(+) or], [Advance], [(-) Vertical Adventures has an open line of credit with a zero balance at its credit union…
Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.05%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $10,500.00 and $13,250.00, respectively. On July 30, it made a payment of $5,000.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) Jul 8 $10,500.00 Jul 30 7.05% Jul 31 7.05% Aug 14 7.05% Aug 31 7.05%
Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed interest rate of 7.05%. On the last day of every month, the accrued interest must be paid. On July 8 and August 14, the company made advances of $13,500.00 and $13,750.00, respectively. On July 30, it made a payment of $8,500.00. Vertical Adventures will restore its zero balance on August 31. Construct a full repayment schedule from July 8 to August 31. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance before Transaction Annual Interest Rate Number Interest Accrued of Days Charged Interest Payment (+) or Principal Balance after Advance Amount Transaction Jul 8 Jul 30 7.05% Jul 31 7.05% Aug 14 7.05% Aug 31 7.05% (-) $13,500.00
A credit card account’s due date is June 9, and the outstanding balance on that day is $460. On that same day, the card holder sends in a payment of $75 and uses the card for a $20 purchase. The card is used again on June 13th and June 24th for purchases of $154 and $54, respectively. If the credit card interest rate on the average daily balance is 2.5% per month, what is the finance charge for the month? Round your answer to the nearest cent.
On May 9 Rainbow Daycare established an open line of credit with its bank and immediately withdrew $25,000. The interest rate was set at prime + 4.75%, and the prime rate was 6.75%. The line of credit requires a payment on the 9th of every month in the amount of "$1,000 or 5% of the current balance, whichever is greater." Rainbow Daycare tookanother advance of $15,000 on June 2. It made a payment of $28,000 on July 16. The prime rate decreased by 0.5% on June 30. Create a repayment schedule from May 9 to August 9 and calculate the total interest paid by Rainbow Daycare.
A particular credit card calculates interest using the unpaid balance method. The monthly interest rate is 1.57% on the unpaid balance on the first day of the billing period minus any payment. At the beginning of the month you owed $1352. You made a payment of $300. a) This credit card requires a $10 minimum monthly payment if the total balance owed on the last day of the billing period is less than $360. Otherwise, The minimum monthly payment is 1/36 of the balance owed on the last day of the billing period, rounded to the nearest whole dollar. What is the minimum monthly payment due?
Springer Products wishes to borrow $90,000 from a local bank using its accounts receivable to secure the loan. The bank's policy is to accept as collateral any accounts that are normally paid within 30 days of the end of the credit period, as long as the average age of the account is not greater than the customer's average payment period. Springer's accounts receivable, their average ages, and the average payment period for each customer are shown in the following table: Customer Accounts Receivable Average age of account Average payment period of customer A $11,000 42 days 50 days B $25,000 70 days 65 days C $10,000 48 days 45 days D $28,000 55 days 50 days E $14,000 50 days 60 days F $19,000 21 days 35 days G $30,000 10 days 30 days H $16,000 25 days 40 days…
Linstrum Company received a 60-day, 6% note for $28,000, dated July 23, from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume 360 days in a year. Do not round your intermediate calculations and round your final answer to the nearest dollar. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.