Your company accepted a 120-day, 6% note for $108,000 from Winter Company on account. On the...

Your company accepted a 120-day, 6% note for $108,000 from Winter Company on account. On the maturity date, Winter Company still cannot pay, so you accept a new a 60-day, 10% note for the full amount due (principal and interest). How much cash will you receive if Winter Company pays you in full on the maturity date of the second note?

Solutions

Expert Solution

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

On December 21, 20X6, Shaw Company accepted from Bogner a $10,000, 90-day, 8% note in lieu...

On December 21, 20X6, Shaw Company accepted from Bogner a $10,000, 90-day, 8% note in lieu of an existing $10,000 account receivable. Shaw Company's fiscal year-end is December 31. What journal entry, if any, should Shaw Company record on December 31, 20X6?

A business issued a 45-day, 6% note for $210,000 to a creditor on account. Journalize the...

A business issued a 45-day, 6% note for $210,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year. For a compound transaction, if an amount box does not require an entry, leave it blank.

A business issued a 45-day, 6% note for $210,000 to a creditor on account. Journalize the...

A business issued a 45-day, 6% note for $210,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note on January 1 and (b) the payment of the note at maturity, including interest. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles.

Prepare journal entries for the following transactions. Accepted a 60 day, 7% note for $2,000 from...

Prepare journal entries for the following transactions. Accepted a 60 day, 7% note for $2,000 from Jones Co. on account; received on the due date the amount due from Jones. On October 12th, accepted a 60 day, 5% note for $50,000 from C. Vargas. On December 11th, Vargas dishonored the note (what did you expect from Vargas)? On December 26th Vargas paid the amount due plus interest for 15 days at 10%.

Uniform Supply accepted a $5,600, 90-day, 12% note from Tracy Janitorial on October 17. If the...

Uniform Supply accepted a $5,600, 90-day, 12% note from Tracy Janitorial on October 17. If the note is dishonored, but Uniform Supply intends to continue collection efforts, what entry should Uniform Supply make on January 15 of the next year? (Assume no reversing entries are made.) (Use 360 days a year.) Debit Notes Receivable $5,600; debit Interest Receivable $168; credit Sales $5,768. Debit Accounts Receivable $5,768; credit Interest Revenue $28; credit Interest Receivable $140, credit Notes Receivable $5,600. Debit Cash...

2016 Dec. 13 Accepted a $26,000, 45-day, 6% note dated December 13 in granting Miranda Lee...

2016 Dec. 13 Accepted a $26,000, 45-day, 6% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Lee note. 2017 Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Mar. 3 Accepted a $20,000, 10%, 90-day note dated March 3 in granting a time extension on the past-due account receivable of Tomas Company. 17 Accepted...

You company borrows $80,000 cash on December 1, by signing a 120 day, 8% note, with...

You company borrows $80,000 cash on December 1, by signing a 120 day, 8% note, with a face value of $80,000. Answer the following questions and record the transactions noted. Record the issuance of the note on December 1. Calculate and record the journal entry for interest required on December 31st. Record the payment of interest and principal at maturity.

Following are transactions of The Barnett Company: 2020 Dec. 16 Accepted a $22,900, 60-day, 5% note...

Following are transactions of The Barnett Company: 2020 Dec. 16 Accepted a $22,900, 60-day, 5% note dated this day in granting Carmel Karuthers a time extension on her past-due account. Dec. 31 Made an adjusting entry to record the accrued interest on the Karuthers note. Dec. 31 Closed the Interest income account. 2021 Feb. 14 Received Karuthers’ payment for the principal and interest on the note dated December 16. Mar. 2 Accepted an $8,800, 4%, 90-day note dated this day...

Following are transactions of Danica Company. Dec. 13 Accepted a $14,000, 45-day, 9% note in granting...

Following are transactions of Danica Company. Dec. 13 Accepted a $14,000, 45-day, 9% note in granting Miranda Lee a time extension on her past-due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Lee note. Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Mar. 3 Accepted a $8,000, 6%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. 17 Accepted a $6,000,...

Following are transactions of Danica Company. Dec. 13 Accepted a $28,000, 45-day, 8% note in granting...

Following are transactions of Danica Company. Dec. 13 Accepted a $28,000, 45-day, 8% note in granting Miranda Lee a time extension on her past-due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Lee note. Exercise 7-13 Notes receivable transactions LO P4 Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Mar. 3 Accepted a $22,000, 8%, 90-day note in granting a time extension on the past-due account receivable...

Subjects