Question
In: Accounting
On 12/31/19 we sign a 3-year note receivable for $50,000 in payment for services that we...
On 12/31/19 we sign a 3-year note receivable for $50,000 in payment for services that we provided to a client. This amount does not include interest. Annual year-end payments $20,106 begin on 12/31/20. The payments include both principal and interest at 10%.
- Prepare an amortization table
- Prepare the journal entry for 12/31/19
- Prepare the journal entry for 12/31/20
- Prepare the journal entry for 1/1/21
- Prepare the journal entry for 1/1/22
Solutions
Expert Solution
| Date | Beginning bal. | Annual payment | Interest | Principal | Ending bal. |
| 12/31/19 | $0 | $0 | $0 | $0 | $50,000 |
| 12/31/20 | $50,000 | $20,106 | $5,000 | $15,106 | $34,894 |
| 1/1/21 | $34,894 | $20,106 | $3,489.40 | $16,616.60 | $18,277.40 |
| 1/1/22 | $18,277.40 | $20,106 | $1,827.74 | $18,277.40 | $0 |
| Total | $10,317.14 | $50,000 |
12/31/19
Notes receivable account......................Debit $50,000
To Service revenue account...........Credit $50,000
12/31/20
Cash account ................................Debit $20,106
To Notes receivable account.......Credit $15,106
To Interest revenue account.........Credit $5,000
1/1/21
Cash account ................................Debit $20,106
To Notes receivable account.......Credit $16,616.60
To Interest revenue account.........Credit $3,489.40
12/31/20
Cash account ................................Debit $20,106
To Notes receivable account.......Credit $18,277.40
To Interest revenue account.........Credit $1,827.74
ekkarill92 answered 1 year agoRelated Solutions
On 12/31/19 we sign a 3-year note receivable for $50,000 in payment for services that we...
On 12/31/19 we sign a 3-year note receivable for $50,000 in
payment for services that we provided to a client. This amount does
not include interest. Annual year-end payments $20,106 begin on
12/31/20. The payments include both principal and interest at
10%.
Prepare an amortization table
Prepare the journal entry for 12/31/19
Prepare the journal entry for 12/31/20
Prepare the journal entry for 1/1/21
Prepare the journal entry for 1/1/22
As of 12/31/19, Bayern Corp. had a $100M 3% (annual) fixed-rate note outstanding which is payable...
As of 12/31/19, Bayern Corp. had a $100M 3% (annual) fixed-rate
note outstanding which is payable on 12/31/23. On 1/1/20, Bayern
decides to enter into a 4-year interest rate swap with Juventus
Bank. Bayern will receive fixed payments (of 3%, annual) and pay a
variable rate based on LIBOR. Assume that interest payments on the
note and settlement on the rate exchange are semiannual. The
LIBOR-based rate on 1/1/20 is also 3% (annual). The LIBOR-based
variable rate is reset every...
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
Journalize the first note payment on December 31, 2018.
Question: Accounting for a long-term note payable
On January 1, 2018, Lakeman-Fay signed a $1,500,000, 15-year, 7% note. The loan
required Lakeman-Fay to make annual payments on December 31 of $100,000
principal plus interest.
Requirements
1. Journalize the issuance of the note on January 1, 2018.
2. Journalize the first note payment on December 31, 2018.
Below are pre-adjusted balances for Snorlax Corp. as of 12-31-19: Accounts Receivable: $100,000 (debit) Allowance for...
Below are pre-adjusted balances for Snorlax Corp. as of
12-31-19:
Accounts Receivable: $100,000 (debit)
Allowance for Bad Debts: $12,000 (debit)
On 12-31-19, Snorlax applies the Percentage of Receivables
method and estimates that 15% of their receivables will be
uncollectible. 2019 write-offs (recorded prior to 12-31-19) totaled
$20,000.
What will Snorlax report as “Accounts Receivable, net” on their
2019 balance sheet? To receive any credit, you must show your
work.
What will Snorlax report as “Bad Debt Expense” on their 2019...
1. On January 1, Panther Corporation received one-year 12% note receivable with a face value of...
1. On January 1, Panther Corporation received one-year 12% note
receivable with a face value of P100,000 from one of its customers.
On October 1, Panther Corporation discounted the note to Peaceful
Bank to meet some of its maturing obligations. The bank’s rate in
discounting the note is 14%. How much is the proceeds from
discounting of notes receivable?
2. Wednesday Company received from a customer a one-year, P
500,000 note bearing annual interest of 8%. Five months prior to...
On October 31, 2015, a company signed a note for $50,000 with a bank. The terms...
On October 31, 2015, a company signed a note for $50,000 with a
bank. The terms were 10% for 9 months. On December 31, 2015,
adjusting entries are recorded. What is the correct adjusting entry
for this event
Group of answer choices
Debit Interest Expense and credit Interest Payable for
$833.33.
. Debit Interest Expense and credit Notes Payable for
$833.33.
Debit Interest Payable and credit Interest Expense for
$3,750.
Debit Interest Expense and credit Interest Payable for
$3,750.
On 12-31-19, J sold some inventory to T. J accepted from T a $4,000,000, 2% note...
On 12-31-19, J sold some inventory to T. J accepted from T a
$4,000,000, 2% note receivable. J will collect interest on the note
every 12-31 starting 12-31-20. J will collect the note principle in
full on 12-31-21. At the time J sold the inventory, the market rate
on similar notes was 3%. The cost of the inventory J sold was
$500,000. Prepare the entries J should make on 12-31-19, 12-31-20,
and 12-31-21.
On 12-31-19, J sold some inventory to T. J accepted from T a $4,000,000, 2% note...
On 12-31-19, J sold some inventory to T. J accepted from T a
$4,000,000, 2% note receivable. J will collect interest on the note
every 12-31 starting 12-31-20. J will collect the note principle in
full on 12-31-21. At the time J sold the inventory, the market rate
on similar notes was 3%. The cost of the inventory J sold was
$500,000. Prepare the entries J should make on
12-31-19, 12-31-20, and 12-31-21
On 12-31-19, Acme entered into an agreement that required Acme to pay someone $500,000 on 12-31-31....
On 12-31-19, Acme entered into an agreement that required Acme
to pay someone $500,000 on 12-31-31. Assume the appropriate market
rate of interest for Acme was 8%.
• As of 12-31-19, what was the present value of Acme’s
obligation?
• As of 12-31-24, what was the present value of Acme’s
obligation?
• As of 12-31-30, what was the present value of Acme’s
obligation?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Assume that attributes with the same name in different relations represent the same domain and that...
- JAVA: Use existing Java Stack class to solve the "Balancing Symbols" problem. The symbols are (),...
- K-NN and Perceptron theory question If we don’t care about the size of the TRAINING SET...
- Make a C program that simulates time-sharing in the operating system. Please follow the instructions provided:...
- What are some current challenges faced by food companies in reducing food waste?
- Arthur buys $2,200.00 worth of stock. Six months later, the value of the stock has risen...
- The Following table is based on a time study for a metal working operation Obs (minutes...
ADVERTISEMENT