On April 1, 2024, Oakland Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, hurting Oakland's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. C agrees to lend $510,000 to its supplier using a 12-month, 11% note. Required: Record the following transactions for Oakland Corporation: 1. The loan of $510,000 and acceptance of the note receivable on April 1, 2024. 2. The adjusting entry for accrued interest on December 31, 2024. 3. Cash collection of the note and interest on April 1, 2025. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the loan of $510,000 and acceptance of the note receivable on April 1, 2024. Note: Enter debits before credits. Date General Journal Debit Credit April 01, 2024

On April 1, 2024, Oakland Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, hurting Oakland's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. C agrees to lend $510,000 to its supplier using a 12-month, 11% note. Required: Record the following transactions for Oakland Corporation: 1. The loan of $510,000 and acceptance of the note receivable on April 1, 2024. 2. The adjusting entry for accrued interest on December 31, 2024. 3. Cash collection of the note and interest on April 1, 2025. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the loan of $510,000 and acceptance of the note receivable on April 1, 2024. Note: Enter debits before credits. Date General Journal Debit Credit April 01, 2024

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

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6MC

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On April 1, 2024, Washtenaw Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Washtenaw's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Washtenaw agrees to lend $480,000 to its supplier using a 12-month, 12% note. Required: Record the following transactions for Washtenaw Corporation: 1. The loan of $480,000 and acceptance of the note receivable on April 1, 2024. 2. The adjusting entry for accrued interest on December 31, 2024. 3. Cash collection of the note and interest on April 1, 2025. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the loan of $480,000 and acceptance of the note receivable on April 1, 2024. 2 Note: Enter debits before credits. Date April 01, 2024 Record entry Credit > View general journal
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Question: On April 1, 2024, Oakland Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Oakland's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Oakland agrees to lend $540,000 to its supplier using a 12-month, 11% note. Required: Record the following transactions for Oakland Corporation: 1. The loan of $540,000 and acceptance of the note receivable on April 1, 2024. 2. The adjusting entry for accrued interest on December 31, 2024. 3. Cash collection of the note and interest on April 1, 2025.
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Bulldog Inc. recently made a $75,000 purchase from a vendor. The vendor will accept payment by check or ACH. In either case, the vendor offers net trade credit terms of 30 days. The assistant treasurer of Bulldog Inc. notes that payment by check will provide an additional 3 days of float (beyond the 30 days of trade credit), relative to payment by ACH (assume an additional one day of float beyond the trade credit period). In an effort to encourage Bulldog Inc. to pay via ACH, the vendor has offered a 0.50% discount for ACH payments. Assuming a discount rate of 5%, which disbursement approach should Bulldog Inc. use? Ignore the transactions cost associated with the check and ACH entry.