On January 15, 2020, XYZ Company received a two-month, 4%, $7,000 note from ABC Company for the settlement of his open account. What entry should XYZ Company record on March 15, 2020 if ABC Company defaults and there is no hope of collecting?
Q: During 2020 Hingalo Company experienced financial difficulties and is likely to default on a…
A: This question deals with the calculation of gain of extinguishment of debt. Gain on extinguishment…
Q: Excel Corporation is experiencing financial difficulty and has met with their creditor (BMO) to…
A: When a note payable bears no interest, it is called a non-interest bearing note. As Excel is not…
Q: At January 1, 2020, Student Ltd owes Tultion Corp for a $120,000 note payable. The note bears…
A: Restructuring in accounting refers to the process of significant changes in financial statements…
Q: Flounder Corp. has the following account balances at December 31, 2021: Notes payable ($50,000 due…
A: Answer) A current liability is a liability that is expected to be paid within 12 months the Balance…
Q: ecord the issuance of t
A: a Date Particulars Debit Credit May 2 Note Receivable 8400 To Cash 8,400 (To record…
Q: On January 1, Cooper Company accepted a one-year note for $5,000 at 4% from one of its customers.…
A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…
Q: On January 1, 2021, Hodge Beanery received $8,000 from the Kennedy Company in exchange for a coffee…
A: Meaning of Deferred Revenue Deferred Revenue refer as the advance revenue which the company will…
Q: At the end of 2020, Bonita Company has accounts receivable of $960,000 and an allowance for doubtful…
A: The answer is as fallows
Q: On February 1, 2022, Hoya Kentinana Co. owed money to it’s supplier, the money tree, Inc. in the…
A: Answer are as follows
Q: On May 1, 2020, People's Networks sold computer networking supplies to Florida Autos for $46,300.…
A: working notes : b) ($ 46,300*10%*6/12) =$ 2,315 c) ($ 46,300*10%*2/12) =$771.66
Q: At the end of 2020, Crown Point Corp. has accounts receivable of $479,200 and an allowance for…
A: Uncollectible receivables are the amount which is not paid by the customer or which is not recovered…
Q: One July 1, 2020 Bob signed an agreement to operate as a franchisee of abc co for an initial…
A: Down payment in this case, is the initial or upfront amount that need to be made while entering into…
Q: On May 1, 2020, People's Networks sold computer networking supplies to Florida Autos for $46,300.…
A: From May 1 to Oct 31 = 6 months. So interest will be accrued for 6 months on Oct 31. From Oct 31…
Q: At January 1, 2021, BB Industries, Inc., owed Second Bank $24 million, under a 10% note due December…
A: Sometimes there will arise a situation that borrower will not be able to pay the bank the principal…
Q: Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal…
A: Under Accrual Basis of accounting business transations are recorded as and when they occur. Here…
Q: 3.1 Prepare the journal entry to record the transaction of December 31, 2019, for Halen company. 3.2…
A: Discount on notes receivable The present value of the payments to be received from a note receivable…
Q: .On January 1, 2021, Risa signed an agreement to operate as a franchisee of Teddy Company for an…
A: Acquisition cost of franchise means the purchase cost of the franchise.
Q: Superior Skateboard Company, located in Ontario, is preparing to adjust entries on December 31,…
A: An adjusting journal entry is a journal entry made in a company's general ledger at the end of an…
Q: On January 1, 2019, Pigero Company took 3-year, P4,000,000 loan from a bank. The loan agreement…
A: Computation of the current liability to the loan in Pigero's 2019 year end financial statement is…
Q: On January 2, 2020, Adani Inc. sells goods to Geo Company in exchange for a zero-interest-bearing…
A: Note receivable refers to the promise to receive amount of money on some day in future. It shows the…
Q: On January 1, 2019, Lala Company received an P800,000, 8%, 2 year note from Move Corporation as…
A: Annual installment = Total amount to be collected / no. of installment = 600000/3 = P200,000
Q: Mooncake Corp.’s accounts payable at December 31, 2018, totaled P800,000 before any necessary…
A: Accounts payable is a short-term debt and a liability on a balance sheet where a business owes money…
Q: Superior Skateboard Company, located in Ontario, is preparing to adjust entries on December 31,…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: On September 1, 2021, Middleton Corp. lends cash and accepts a $1,000 note receivable that offers 18…
A: The 6 months note issued on September 1, 2021. The interest will be earned for 4 months in 2021…
Q: Brady is hired in 2021 to be the accountant for Anderson Manufacturing, a private company. At the…
A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…
Q: On March 1, 2019, Seymour Inc assigns its accounts receivable of 300,000 to Minnesota financing…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: At the end of 2021, Worthy Co.’s balance for Accounts Receivable is $20,000, while the company’s…
A: Given information is: At the end of 2021, Worthy Co.’s balance for Accounts Receivable is $20,000,…
Q: Greene Corporation loaned $150,000 to another corporation on December 1, 17) 2021 and received a…
A: solution note dear student as per the Q&A guideline we are required to answer the first question…
Q: At the end of 2020, Oriole Co. has accounts receivable of $801,800 and an allowance for doubtful…
A: Adjusting journal entry: At year end when company finalise its accounts then any unrecognized income…
Q: on january 1, cooper company accepted a one-year note for $5,000 at 4% from one of its customers.…
A: Journal entries are the transactions that are recorded in the primary book. They are chronological…
Q: Bramble Corp. has the following account balances at December 31, 2021: Notes payable ($47,000 due…
A: Current liabilities: Liabilities that are due to be paid within one year or within one operating…
Q: On April 23, 2021, Bong Company received from a customer on an overdue account a 90-day, 8%,…
A: Maturity value of the note = Face value of note + interest = P500000 + (500000*8%*90/360) = P500,000…
Q: At the end of 2020, Bonita Company has accounts receivable of $960,000 and an allowance for doubtful…
A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…
Q: Zenephia Corp. accepted a nine-month note receivable from a customer on October 1, 2022. If Zenephia…
A: As per Revenue Recognition principle, revenue is recognized when the goods are sold or services are…
Q: On April 23, 2021, Bong Company received from a customer on an overdue account a 90-day, 8%,…
A: Maturity value of the note = Face value of note + interest = P500000 + (500000*8%*90/360) = P500,000…
Q: On November 1, 2020, Slow Inc. purchased a delivery truck from DW Trucks, costing $94,000. However,…
A: When a fixed asset is purchased, then fixed asset account is debited and liability for payment is…
Q: On January 1, 2021, Risa signed an agreement to operate as a franchisee of Teddy Company for an…
A: The acquisition cost of the franchise will be the sum of down payment and the present value of the…
Q: At December 31, 2019, one of MNO Company's credit customers, 123A, is experiencing financial…
A: The impairment loss is recognized if the market value of the investment is lower than the carrying…
Q: Splish Corporation borrowed $58,500 on November 1, 2020, by signing a $60,000, 3-month,…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Cool Corporation’s accounts payable at December 31, 2020 amounted to P5,400,000 before any necessary…
A: solution : balance of account payable on December 31,2020 before adjustments =P 5,400,000 let…
Q: At the end of 2020, Monty Corp. has accounts receivable of $2.95 million and an allowance for…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.…
Q: At 30 September 2020, Wall had an allowance for doubtful account of P37,000. During the year ended…
A: The numerical has covered the concept of Accounts Receivable. An allowance for doubtful debt…
Q: On January 1 2019, Sunrise Company is experiencing extreme financial pressure and is in default in…
A: SOLUTION- WORKING NOTES- CALCULATION OF LOSS OR GAIN ON MODIFICATION- OLD ACCRUED…
Q: The following series of transactions occurred during 2020 and 2021 when Jenna Corp. sold merchandise…
A: The journal entries keep the record for daily transactions of the business.
Q: On January 1, 2019, an entity was indebted to a bank under a P4,800,000, 10% loan. The loan was…
A: Impairment loss is when the carrying amount is more than the recoverable amount. Every entity should…
Q: On January 1 2019, Sunrise Company is experiencing extreme financial pressure and is in default in…
A: Debt modification is done in case of severe financial pressure.This is not a healthy option…
Q: Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the…
A: Meaning of Journal Entries: Journal entries are the record of business…
Q: land should recognize a gain on the partial settlement and restructure of the debt of
A:
Q: At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $26 million under a 10% note due…
A: (1)
Q: You have the following transaction during the year of 2020 as related to Steve company: 1. On the 1"…
A: 1. Maturity Date of First Note: When maturity period is given in month then Maturity date is same as…
Pls answer
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- On October 1, 2022, Harlan received a $15,000, six-month, 10% note in exchange for goods sold to McBride Company. Prepare the journal entry to record the receipt of the note on October 1, 2022. Prepare the adjusting entry to record the accrued interest on the note at December 31, 2022. Write a wriiten explanation on what would Harlan do if McBride dishonors its note, but Harlan still expects to eventually collect it?at the end of 2020 vermillion corp has an account receivable of 479,200 and an allowance for doubtful accounts of 30300. On jan 24 2021, Vermillion Corp learns that its 11,600 receivables from hutley corp is not collectable. Management authorizes a write off. But on March 4th 2021, Vermillion Corp receives payment in full of 11,600 from Hutley corp after the write off. prepare the required journal entries to record this transactionLarkspur Corporation borrowed $78,000 on November 1, 2025, by signing a $79,755, 3-month, zero-interest-bearing note. Prepare Larkspur's November 1, 2025, entry; the December 31, 2025, annual adjusting entry; and the February 1, 2026, entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date 11/1/25 12/31/25 2/1/26 > Account Titles and Explanation Cash (To record discount amortization) (To record repayment of note) Debit Credit
- On December 31, 2020, Hoosier Inc. establishes an allowance for doubtful accounts of 3% of its accounts receivable balance of $180,000. Hoosier Inc. decides on March 15, 2021, not to pursue collection of Smith’s $1,000 account. The likelihood of collection does not support further collection efforts. What is the net realizable value (NRV) of accounts receivable before and after the write-off of the Smith account?Splish Corporation borrowed $58,500 on November 1, 2020, by signing a $60,000, 3-month, zero-interest-bearing note. Prepare Splish's November 1, 2020, entry; the December 31, 2020, annual adjusting entry; and the February 1, 2021, entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record interest) (To pay note)On July 10, 2022, FDNACCT Services received from client a 60-day, 12%, P148,000 note for services rendered. Unfortunately, the client dishonored the note on maturity date. At what amount should Interest Income account be credited on maturity date?
- Blue Corporation borrowed $62,000 on November 1, 2025, by signing a $63,395, 3-month, zero-interest-bearing note. Prepare Blue's November 1, 2025, entry; the December 31, 2025, annual adjusting entry; and the February 1, 2026, entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit CreditDuring the beginning of 2024 one of Zain's customers Erika Rogers was experiencing cash flow problems and was unable to pay her $19, 120 account to Zain Mangement Group. Zain Management Group agreed to substitute a two-year note for the open account starting on January 1st, 2024. Zain issued a two year non-interest bearing note. The note has an implied interest rate of 6%. Prepare the journal or adjusting entries for the note for the two years. Make sure to put the dates of your entrieAt the end of 2021, Worthy Co.’s balance for Accounts Receivable is $20,000, while the company’s total assets equal $1,500,000. In addition, the company expects to collect all of its receivables in 2022. In 2022, however, one customer owing $2,000 becomes a bad debt on March 14. Record the write off of this customer’s account in 2022 using the direct write-off method.
- On February 1, 2022, Hoya Kentinana Co. owed money to it’s supplier, the money tree, Inc. in the amount of $1,200. Hoya knows it will not be able to pay the amount by the invoice due date of 2/15, s it asks to issue a 2 month note payable to the money tree for the amount due. The money tree accepts, and Hoya’s entry will include a credit to which account? Cash Note payable accounts receivable interest expenseSheridan Corporation borrowed $62,400 on November 1, 2020, by signing a $63,600, 3-month, zero-interest-bearing note. Prepare Sheridan's November 1, 2020, entry; the December 31, 2020, annual adjusting entry; and the February 1, 2021, entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Account Titles and Explanation Date (To record interest) (To pay note) Debit CreditAt the end of 2020, Bonita Company has accounts receivable of $960,000 and an allowance for doubtful accounts of $48,000. On January 16, 2021, Bonita Company determined that its receivable from Ramirez Company of $7,200 will not be collected, and management authorized its write-off. Prepare the journal entry for Bonita Company to write off the Ramirez receivable. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)