On July 1, 2023, Blossom Ltd. received a loan from its bank for $10,000 bearing interest at 4%. The loan is payable in two annual instalments of $5,302 principal and interest on June 30 each year. The company records adjusting journal entries annually at year end on December 31. (a) Prepare an instalment payment schedule for the term of the loan. (Round answers to O decimal places, eg 5,255)
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- Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
- Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest ExpenseEverglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31. (Round answers to the nearest cent, if needed.) A. Compute the interest recognized as of December 31 in year 1. B. Compute the principal due in year 1.
- Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that it will owe 17,400 in property taxes for the year. On June 1, its property taxes are assessed at 17,000, which it pays immediately. Prepare the related journal entries for April 1, May 1, and June 1. Then compute the monthly property tax expense that Cee Co. would record during June through March.Anderson Air is a customer of Handler Cleaning Operations. For Anderson Airs latest purchase on January 1, 2018, Handler Cleaning Operations issues a note with a principal amount of $1,255,000, 6% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Handler Cleaning Operations for the following transactions. A. Entry for note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019
- On December 31, 2023, Bramble Link Corporation received a four-year, 6%, $764,000 bank loan. The terms provide for payment of the bank loan with semi-annual instalment payments of $108,837 principal and interest, starting on June 30. Bramble has a March 31 year end and records adjusting entries annually. (a) Your answer is correct. Record the receipt of the bank loan on December 31, 2023, (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List debit entry before credit entry) Date Account Titles Dec. 31 Cash Bank Loan Payable Debit 764000 Credit 764000On January 1, 2024, Oriole Corp. borrows $16,800 by signing a 3-year, 6% note payable. The note is repayable in three annual fixed principal payments on December 31 of each year. (a) Question Part Score (b) Question Part Score (c) 2/2 6/6 Prepare journal entries to record the note and the first instalment payment. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date > Account Titles DebitOn July 1, 2023, Wildhorse Ltd. received a loan from its bank for $20,000 bearing interest at 636. The loan la payable in two annual Instalments of $10,909 principal and Interest on June 30 each year. The company records adjusting journal entries annually at year and on December 31 Your answer la correct. Prepare an instalment payment schedule for the term of the loan. (Round answers to 0 decimal places, eg. 5,255) (b) Cash Payment 20909 20909 Textbook and Media List of Accounts Your answer la correct. Account Titles Cash Loan P Interest Exerc Interat Payable Internet Experas Rank Loan Payable Interat Pay Cash Interest Expens Interest Expens Record (1) the receipt of $20,000 cash from the loan on July 1, 2023; (2) the accrual of Interest on December 31, 2023; (3) the first Instalment payment on June 30, 2024; and (4) the accrual of Interest on December 31, 2024. (Round answers to decimal places, g 5,275. Credit account titles are automatically indented when the amount is entered. Do…