Question
In: Accounting
On November 30, 2019, Tucker Products performed computer programming services for Thomas Inc. in exchange for...
On November 30, 2019, Tucker Products performed computer programming services for Thomas Inc. in exchange for a 5-month, $38,500, 12% note receivable. Thomas paid Tucker the full amount of interest and principal on April 30, 2020.
Required:
Prepare the necessary entries for Tucker to record the transactions described above. For a compound transaction, if an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar.
| Nov. 30, 2019 | Notes Receivable | ||
| Sales Revenue | |||
| Record issuance of the note | |||
| Dec. 31, 2019 | Interest Receivable | ||
| Interest Income | |||
| Record accrued interest income | |||
| Apr. 30, 2020 | Cash | ||
| Notes Receivable | |||
| Interest Receivable | |||
| Interest Income | |||
| Record collection of note receivable |
Solutions
Expert Solution
| Date | Account Titles | Debit | Credit | |
| Nov-30 | Notes Receivable | $ 38,500 | ||
| Sales Revenue | $ 38,500 | |||
| Dec-31 | Interest Receivable | $ 385 | =38500*12%*1/12 | |
| Interest Income | $ 385 | |||
| Apr-30 | Cash | $ 40,425 | ||
| Notes Receivable | $ 38,500 | |||
| Interest Receivable | $ 385 | |||
| Interest Income | $ 1,540 | =38500*12%*4/12 |
ekkarill92 answered 2 years agoRelated Solutions
The bank portion of the bank reconciliation for Thomas Company at November 30, 2019, is: THOMAS...
The bank portion of the bank reconciliation for Thomas Company
at November 30, 2019, is:
THOMAS COMPANY
Bank Reconciliation
November 30, 2019
Cash balance per bank
$14,367.90
Add: Deposits in transit
2,530.20
16,898.10
Less: Outstanding checks
Check Number
Check Amount
3451
$ 2,260.40
3470
1,100.10
3471
824.50
3472
1,446.80
3474
1,050.00
6,681.80
Adjusted cash balance per bank
$10,216.30
The adjusted cash balance per bank
agreed with the cash balance per books at November 30.
At December 31, the cash balance...
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On January 1, 2019, FLOWERS Inc. rendered services in exchange
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Interest at a rate of 3% is payable annually on January 1 (first
payment
Jan 1, 2020). The customer has credit ratings that require it to
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FLOWERS uses IFRS.
Required: Show and label all calculations.
(Round to the nearest dollar.)
What would be the value of the service revenue recorded on
January 1, 2019?...
On January 1, 2019, FLOWERS Inc. rendered services in exchange for a four-year promissory note having...
On January 1, 2019, FLOWERS Inc. rendered services in exchange
for a four-year promissory note having a face value of $10,000.
Interest at a rate of 3% is payable annually on January 1 (first
payment Jan 1, 2020). The customer has credit ratings that require
it to borrow money at 8% interest. FLOWERS uses IFRS. Required:
Show and label all calculations. (Round to the nearest dollar.)
What would be the value of the service revenue recorded on
January 1, 2019?...
Stickleback performed services for a customer in exchange for a $18,000, 5 year, 10% note receivable...
Stickleback performed services for a customer in exchange for a
$18,000, 5 year, 10% note receivable on January 1, 2020. Interest
will be paid quarterly, with the first payment at the end of the
first quarter. The customer’s normal borrowing rate is 12%.
Determine the balance in the discount on note receivable as of
December 31, 2023.
$2,007
$334
None of the other answer choices is correct.
$632
$1,130
$5,194
$17,665
Jennifer's Landscaping Services signed a $400-per-month contract on November 1, 2019, to provide plant watering services for Lola Inc.'s office buildings.
Exercise 8-69Unearned RevenueJennifer's Landscaping Services signed a $400-per-month contract
on November 1, 2019, to provide plant watering services for Lola
Inc.'s office buildings. Jennifer's received 4 months' service fees
in advance on signing the contract.Required:1. Prepare Jennifer's journal entry to record
the cash receipt for the first 4 months.Nov. 1CashAccounts Payable(Record receipt of payment for services not yet performed)1. Revenues are recognizes when earned. We talked about this in
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Bertrand Inc. performed services for clients in the amount of $2,150 on credit. If this transaction...
Bertrand Inc. performed services for clients in the amount of
$2,150 on credit. If this transaction had been posted in error to
the Cash account instead of the Accounts Receivable account, what
correcting entry would be necessary?
Multiple Choice
Debit Fees Income $2,150; credit Cash $2,150
Debit Cash $2,150; credit Accounts Receivable $2,150
Debit Accounts Receivable $2,150; credit Cash $2,150
Debit Accounts Receivable $2,150; credit Fees Income $2,150
Bertrand Inc. performed services for clients in the amount of $1,450 on credit. If this transaction...
Bertrand Inc. performed services for clients in the amount of
$1,450 on credit. If this transaction had been posted in error to
the Cash account instead of the Accounts Receivable account, what
correcting entry would be necessary?
Multiple Choice:
1. Debit Accounts Receivable $1,450; credit Fees Income
$1,450
2. Debit Accounts Receivable $1,450; credit Cash $1,450
3. Debit Fees Income $1,450; credit Cash $1,450
4. Debit Cash $1,450; credit Accounts Receivable $1,450
At the end of Wildhorse Co.’s fiscal year on November 30, 2019, these accounts appeared in...
At the end of Wildhorse Co.’s fiscal year on November 30, 2019,
these accounts appeared in its adjusted trial balance. Freight-In
$7,600 Inventory 40,900 Purchases 585,200 Purchase Discounts 5,900
Purchase Returns and Allowances 2,800 Sales Revenue 1,164,700 Sales
Returns and Allowances 20,000 Additional facts: 1. Merchandise
inventory on November 30, 2019, is $51,800. 2. Wildhorse Co. uses a
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The adjusted trial balance of University Book Store as of November 30, 2019, after the firm’s...
The adjusted trial balance of University Book Store as of
November 30, 2019, after the firm’s first month of operations,
appears below.
Appropriate adjustments have been made for the following
items:
Supplies used during the month, $5,400.
Expired rent for the month, $6,600.
Depreciation expense for the month, $1,700.
UNIVERSITY BOOK STORE
Adjusted Trial Balance
November 30, 2019
Account Name
Debit
Credit
Cash
$
45,750
Accounts Receivable
7,224
Supplies
8,400
Prepaid Rent
39,600
Equipment
54,600
Accumulated Depreciation-Equipment
$
1,700
Accounts...
The adjusted trial balance of University Book Store as of November 30, 2019, after the firm’s...
The adjusted trial
balance of University Book Store as of November 30, 2019, after the
firm’s first month of operations, appears below.
Appropriate adjustments have been made for the following
items:
Supplies used during the month, $2,900.
Expired rent for the month, $3,500.
Depreciation expense for the month, $950.
UNIVERSITY BOOK STORE
Adjusted Trial Balance
November 30, 2019
Account
Name
Debit
Credit
Cash
$
23,075
Accounts
Receivable
3,812
Supplies
4,600
Prepaid
Rent
21,000
Equipment
27,500
Accumulated
Depreciation-Equipment
$
950
Accounts...
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