Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Chapter 13, Problem 13.3BE
Determining accrued interest
• LO13–2
On July1, Orcas Lab issued a $100,000, 12%, eight-month note. Interest is payable at maturity. What is the amount of interest expense that should be recorded in a year-end
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Question 31
Nelsie Corporation has an outstanding 60- day 6% note receivable armounting to P 15.000 dated December 1 of the current
yoar. The company is using the calendar yoar in preparing its financial statomonts. What account should be creditod and
what is the amount?
Interest Income, P 75
Interest Income, P 900
Oc
Accrued Interest Income, P 150
Unearmed Interest Income, P150
Journalize the following, assuming a 360-day year is used for interest computations:
Apr. 30
Issued a $1,080,000, 120-day, 9% note dated April 30 to Misner Co. on account.
Paid Misner Co. the amount owed on the note dated April 30.
Aug. 30
If an amount box does not require an entry, leave it blank.
Apr. 30
Aug. 30
A
B
E
2 Determine the maturity date and compute interest for each note.
3 Days to be used per year
360 days
4
Note
Contract Date
Principal
Interest Rate
Period of Note (Term)
6.
1
1-Mar
$10,000
6%
60 days
7
2
15-May
15,000
8%
90 days
8
3
20-Oct
8,000
4%
45 days
9.
10 Required:
11
12 (Use cells A5 to F8 from the given information to complete this question.)
13
14
Note
Contract Date
Maturity Date
Interest Expense
15
16
17
3
18
Chapter 13 Solutions
Intermediate Accounting, 10 Ed
Ch. 13 - What are the essential characteristics of...Ch. 13 - Prob. 13.2QCh. 13 - Bronson Distributors owes a supplier 100,000 on...Ch. 13 - Bank loans often are arranged under existing lines...Ch. 13 - Prob. 13.5QCh. 13 - Prob. 13.6QCh. 13 - Salaries of 5,000 have been earned by employees by...Ch. 13 - Prob. 13.8QCh. 13 - Prob. 13.9QCh. 13 - Prob. 13.10Q
Ch. 13 - Prob. 13.11QCh. 13 - Prob. 13.12QCh. 13 - Long-term obligations usually are reclassified and...Ch. 13 - How do IFRS and U.S. GAAP differ with respect to...Ch. 13 - Prob. 13.15QCh. 13 - Prob. 13.16QCh. 13 - Prob. 13.17QCh. 13 - Prob. 13.18QCh. 13 - Suppose the analysis of a loss contingency...Ch. 13 - Prob. 13.20QCh. 13 - Distinguish between the accounting treatment of a...Ch. 13 - At December 31, the end of the reporting period,...Ch. 13 - After the end of the reporting period, a...Ch. 13 - Prob. 13.24QCh. 13 - Prob. 13.25QCh. 13 - Prob. 13.26QCh. 13 - Prob. 13.27QCh. 13 - Prob. 13.28QCh. 13 - Bank loan; accrued interest LO132 On October 1,...Ch. 13 - Non-interest-bearing note; accrued interest LO132...Ch. 13 - Determining accrued interest LO132 On July1,...Ch. 13 - Commercial paper LO132 Branch Corporation issued...Ch. 13 - Non-interest-bearing note; effective interest rate...Ch. 13 - Sales tax LO133 DuringDecember, Rainey Equipment...Ch. 13 - Prob. 13.12BECh. 13 - Prob. 13.13BECh. 13 - Contingency LO135, LO136 Skill Hardware is the...Ch. 13 - Contingency LO135, LO136 Bell International can...Ch. 13 - Prob. 13.16BECh. 13 - Prob. 13.17BECh. 13 - FASB codification research LO133, LO134, LO135...Ch. 13 - Current noncurrent classification of debt; Sprint...Ch. 13 - Prob. 13.12ECh. 13 - Prob. 13.14ECh. 13 - Extended warranties LO135, LO136 Carnes...Ch. 13 - Disclosures of liabilities Indicate (by letter)...Ch. 13 - Prob. 13.11PCh. 13 - Prob. 13.2DMPCh. 13 - Prob. 13.3DMPCh. 13 - Prob. 13.4DMPCh. 13 - Prob. 13.18DMPCh. 13 - Real World Case 1319 Contingencies LO135 Real...Ch. 13 - Prob. 1CCTCCh. 13 - Prob. 2CCTC
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