College Accounting - With Quickbooks 2015 CD and Access
12th Edition
ISBN: 9781305790254
Author: Scott
Publisher: Cengage
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Chapter D, Problem 8P
Prepare entries in general journal form to record the following:
Aug. 6 Woodard Company failed to pay its 30-day, 5 percent note for $480, dated July 7. The note is thus dishonored at maturity.
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On January 1, Cooper Company accepted a one-year note for $5,000 at 4% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company treated it as a dishonored note. Prepare the journal entry that Cooper will make to record the dishonored note. Omit explanation.
The maker of a $240,000, 6%, 90-day note receivable failed to pay the note on the due date of November 30. What accounts should be debitedand credited by the payee to record the dishonored note receivable?
On January 1, Orange Corp. accepted a one-year note for $7,000 at 4% from one of its customers. When
the note matured on December 31, the customer was unable to pay, and the company treated it as a
dishonored note. The journal entry would be: A. Cash 7,280 Note Receivable Interest Revenue B. Accounts
Receivable Note Receivable Interest Revenue C. Bad Debts Expense Notes Receivable Interest Revenue D.
Accounts Receivable Notes Receivable 7,000 280 7,280 7,000 280 7,280 7,000 280 7,280 7,280
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- Dexter Company applies the direct write-off method in accounting for uncollectible accounts. March 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from its customer Leer Company. 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above selected transactions of Dexter.arrow_forward(b) assuming Ringo does not make reversing entries, prepare the journal entry to record the payment of the note on April 1. On April 1, Ringo Company borrowed $20,000 from its bank by issuing a 9%, 12-month note, with the interest to be paid on the maturity date. Prepare journal entries to record the issuance of the note and the related year-end adjusting entry on December 31.arrow_forwardCarla Vista Co. closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $23,600. Notes Receivable include the following. Date Maker Face Value Term Maturity Date Interest Rate April 21 Coote Inc. $5,600 90 days July 20 8% May 25 Brady Co. 7,200 60 days July 24 10% June 30 BMG Corp. 10,800 6 months December 31 6% During July, the following transactions were completed. July 5 Made sales of $4,110 on Carla Vista Co. credit cards. 14 Made sales of $600 on Visa credit cards. The credit card service charge is 3%. 20 Received payment in full from Coote Inc. on the amount due. 24 Received payment in full from Brady Co. on the amount due. Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of…arrow_forward
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- Following are transactions for Ridge Company. March 21 Accepted a $11,900, 180-day, 7 % note from Tamara Jackson in granting a time extension on her past-due account receivable. September 17 Jackson dishonored her note. December 31 After trying several times to collect, Ridge Company wrote off Jackson's account against the Allowance for Doubtful Accounts. Complete the table to calculate the Interest amounts at September 17 and use the calculated value to prepare your journal entries. Note: Do not round Intermediate calculations. Round your final answers to nearest whole dollar. Use 360 days a year. Complete this question by entering your answers in the tabs below. Interest Amounts General Journal Complete the table to calculate the interest amounts at September 17. Total Through Principal Maturity Rate (%) 7% Time 180/360 Total interest 4 General Journal >arrow_forwardAt year-end ( December 31)Chan Company estimates its bad debts as 1% of its annual credit sales of $487500Chan records its Bad Debts Expense for that estimate. On the following February 1Chan decides that the $580 account of P.Park is uncollectible and writes it off as a bad debt. On June 5. Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.arrow_forwardLinstrum Company received a 60-day, 9% note for $56,000, 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. 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. CHART OF ACCOUNTS Linstrum Company General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 129 Allowance for Doubtful Accounts 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office…arrow_forward
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