Notes payable Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs. To prepare: The journal entry to record the receipt of funds from Bank F by Company M on June 1.

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Answer 1

Question

Chapter 10, Problem 10.2E

(a)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To prepare: The journal entry to record the receipt of funds from Bank F by Company M on June 1.

(b)

To determine

To prepare: The adjusting journal entry for accrued interest on the 8% notes payable by Company “M” on June 30.

(c)

To determine

The journal entry to record 8% notes payable payment, and interest of the note to Bank F on December 1.

(d)

To determine

To Compute: The total financing cost (interest expenses) of 8% notes payable, using principal amount, interest expenses and interest time period.

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Mat lives in Barbados and is desirous of starting his own business from inheritances that his parents left him. He approached you for advice on the best type of business to register. Mr. Mat said he would love to gain benefits from any tax relief that is available that the government has to offer. Give advice to Mr. Mat whether it would be more beneficial to start a Company or an Individual Trading Business. outline for Mr. Mat why setting up either a company, or a trading as business is more advantageous over the other. cover matters like: Tax rates, Available tax reliefs and or tax credits Ease of operations of a company, as well as ease of operations of an individual trading business.

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Answer 2

Question

Chapter 10, Problem 10.2E

(a)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To prepare: The journal entry to record the receipt of funds from Bank F by Company M on June 1.

(b)

To determine

To prepare: The adjusting journal entry for accrued interest on the 8% notes payable by Company “M” on June 30.

(c)

To determine

The journal entry to record 8% notes payable payment, and interest of the note to Bank F on December 1.

(d)

To determine

To Compute: The total financing cost (interest expenses) of 8% notes payable, using principal amount, interest expenses and interest time period.

Expert Solution & Answer

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Answer 3

Question

Chapter 10, Problem 10.2E

(a)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To prepare: The journal entry to record the receipt of funds from Bank F by Company M on June 1.

(b)

To determine

To prepare: The adjusting journal entry for accrued interest on the 8% notes payable by Company “M” on June 30.

(c)

To determine

The journal entry to record 8% notes payable payment, and interest of the note to Bank F on December 1.

(d)

To determine

To Compute: The total financing cost (interest expenses) of 8% notes payable, using principal amount, interest expenses and interest time period.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 10, Problem 10.2E

(a)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To prepare: The journal entry to record the receipt of funds from Bank F by Company M on June 1.

(b)

To determine

To prepare: The adjusting journal entry for accrued interest on the 8% notes payable by Company “M” on June 30.

(c)

To determine

The journal entry to record 8% notes payable payment, and interest of the note to Bank F on December 1.

(d)

To determine

To Compute: The total financing cost (interest expenses) of 8% notes payable, using principal amount, interest expenses and interest time period.

Expert Solution & Answer

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Answer 5

Chapter 10, Problem 10.2E

(a)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To prepare: The journal entry to record the receipt of funds from Bank F by Company M on June 1.

(b)

To determine

To prepare: The adjusting journal entry for accrued interest on the 8% notes payable by Company “M” on June 30.

(c)

To determine

The journal entry to record 8% notes payable payment, and interest of the note to Bank F on December 1.

(d)

To determine

To Compute: The total financing cost (interest expenses) of 8% notes payable, using principal amount, interest expenses and interest time period.

Answer 6

Chapter 10, Problem 10.2E

(a)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To prepare: The journal entry to record the receipt of funds from Bank F by Company M on June 1.

Answer 7

Chapter 10, Problem 10.2E

(a)

To determine

Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To prepare: The journal entry to record the receipt of funds from Bank F by Company M on June 1.

Answer 8

(b)

To determine

To prepare: The adjusting journal entry for accrued interest on the 8% notes payable by Company “M” on June 30.

Answer 9

(b)

To determine

To prepare: The adjusting journal entry for accrued interest on the 8% notes payable by Company “M” on June 30.

Answer 10

(c)

To determine

The journal entry to record 8% notes payable payment, and interest of the note to Bank F on December 1.

Answer 11

(c)

To determine

The journal entry to record 8% notes payable payment, and interest of the note to Bank F on December 1.

Answer 12

(d)

To determine

To Compute: The total financing cost (interest expenses) of 8% notes payable, using principal amount, interest expenses and interest time period.

Answer 13

(d)

To determine

To Compute: The total financing cost (interest expenses) of 8% notes payable, using principal amount, interest expenses and interest time period.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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Notes payable Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs. To prepare: The journal entry to record the receipt of funds from Bank F by Company M on June 1.

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Notes payable

Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

To prepare: The journal entry to record the receipt of funds from Bank F by Company M on June 1.

To prepare: The adjusting journal entry for accrued interest on the 8% notes payable by Company “M” on June 30.

The journal entry to record 8% notes payable payment, and interest of the note to Bank F on December 1.

To Compute: The total financing cost (interest expenses) of 8% notes payable, using principal amount, interest expenses and interest time period.

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