Cosimo Enterprises issues a $260,000, 45-day, 5% note to Dixon Industries for merchandise inventory.a. Journalize Cosimo Enterprises’ entries to record:1. the issuance of the note.2. the payment of the note at maturity.b. Journalize Dixon Industries’ entries to record:1. the receipt of the note.2. the receipt of the payment of the note at maturity.

Cosimo Enterprises issues a $260,000, 45-day, 5% note to Dixon Industries for merchandise inventory.a. Journalize Cosimo Enterprises’ entries to record:1. the issuance of the note.2. the payment of the note at maturity.b. Journalize Dixon Industries’ entries to record:1. the receipt of the note.2. the receipt of the payment of the note at maturity.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....

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Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
3. Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%. a. Journalize Ramsey's entries to record: 1. The issuance of the note. 2. The payment of the note at maturity. b. Journalize Buckner's entries to record: 1. The receipt of the note. 2. The receipt of the payment of the note at maturity.
Bennett Enterprises issues a $400,000, 90-day, 5% note to Spectrum Industries for merchandise inventory. Assume a 360-day year. If an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises' entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 1. 2. b. Journalize Spectrum Industries' entries to record: 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. 1. 2.
Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%.a. Journalize Ramsey’s entries to record:1. the issuance of the note.2. the payment of the note at maturity.b. Journalize Buckner’s entries to record:1. the receipt of the note.2. the receipt of the payment of the note at maturity.
Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%. Journalize Ramsey’s entries to record: The issuance of the note. The payment of the note at maturity. Journalize Buckner’s entries to record: The receipt of the note. The receipt of the payment of the note at maturity.
Bennett Enterprises issues a $580,000, 45-day, 6% note to Spectrum Industries for merchandise inventory. Required: A. Journalize Bennett Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Spectrum Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.
4. AB company receives $10,000 for a 6 month, 8% note on 11/1/20. Prepare the journal entry for the receipt. Account Debit Credit 5. Prepare the journal entry to accrue interest on the above note at 12/31/20. Account Debit Credit 6. Prepare the entry to record payment of the above note in full on it's due date of 5/1/21. Account Debit Credit 7. AB Company purchases a truck in the amount of $15,000. Additional costs include sales tax of $1500, painting of $2500, license of $150 and a 1 year auto insurance policy of $1200. Complete the journal entry for the auto purchase. Account Debit Credit
Cosimo Enterprises issues a $260,000, 45-day, 5% note to Dixon Industries for merchandise inventory. Required: A. Journalize Cosimo Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Dixon Industries’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. he receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.
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Roberti Company paid Hoffman Company for merchandise with a $8,000, 60-day, 9% note dated April 1. If Roberti Company pays the note at maturity, what entry should Hoffman make at that time? Select one: OA. Cash OB. Notes payable Interest expense Cash Cash Interest income Notes receivable O D. Interest income Notes receivable Notes payable Interest expense Cash 8,720 8,000 720 8,120 7,880 120 720 8,000 8,720 120 8,000 8,000
Ramsey Company issues an $550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 4%. Required: A. Journalize Ramsey’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Buckner’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.