On June 1, Cullumber Company Ltd. borrows $72,000 from Acme Bank on a 6-month, $72,000, 4%...

On June 1, Cullumber Company Ltd. borrows $72,000 from Acme Bank on a 6-month, $72,000, 4% note. The note matures on December 1.

Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 1	enter an account title for the entry on June 1	enter a debit amount	enter a credit amount
	enter an account title for the entry on June 1	enter a debit amount	enter a credit amount

List of Accounts

Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 30	enter an account title for the adjusting entry on June 30	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on June 30	enter a debit amount	enter a credit amount

List of Accounts

Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 1	enter an account title for the entry at maturity on December 1	enter a debit amount	enter a credit amount
	enter an account title for the entry at maturity on December 1	enter a debit amount	enter a credit amount
	enter an account title for the entry at maturity on December 1	enter a debit amount	enter a credit amount

Solutions

Expert Solution

Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 1	Cash	72000
	Notes payable		72000

Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
June 30	Interest expense (720004%1/12)	240
	Interest payable		240

Date	Account Titles and Explanation	Debit	Credit
Dec. 1	Notes payable	72000
	Interest payable (240*6)	1440
	Cash		73440

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

On June 1, Oriole Company Ltd. borrows $42,000 from Acme Bank on a 6-month, $42,000, 8%...

On June 1, Oriole Company Ltd. borrows $42,000 from Acme Bank on a 6-month, $42,000, 8% note. The note matures on December 1. Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 1 eTextbook and Media List of Accounts Prepare the adjusting entry on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent...

On September 30, ABC Company borrows $120,000 from Ottawa State Bank by signing a 6-month, 7.25%,...

On September 30, ABC Company borrows $120,000 from Ottawa State Bank by signing a 6-month, 7.25%, interest-bearing note. Instructions: Prepare the necessary entries below associated with the note payable on the books of ABC Company. (a) Prepare the journal entry when the note was issued. (b) Prepare the adjusting entry at December 31 to accrue interest. (c) Prepare the entry to record payment of the note at maturity date. Solution question 2: Date Account title and explanation Debit...

On June 10, Cullumber Company purchased $6,200 of merchandise from Oriole Company, terms 4/10, n/30. Cullumber...

On June 10, Cullumber Company purchased $6,200 of merchandise from Oriole Company, terms 4/10, n/30. Cullumber Company pays the freight costs of $400 on June 11. Goods totaling $300 are returned to Oriole Company for credit on June 12. On June 19, Cullumber Company pays Oriole Company in full, less the purchase discount. Both companies use a perpetual inventory system.On June 10, Cullumber Company purchased $6,200 of merchandise from Oriole Company, terms 4/10, n/30. Cullumber Company pays the freight costs...

Manufacturing company borrows 4 million euros from the bank to fight the consequences of the corona...

Manufacturing company borrows 4 million euros from the bank to fight the consequences of the corona virus. The repayment schedule is based on an annuity. The interest rate is 8% and the loan is paid back with 4 annual payments. Question: * What is the loan balance immediately the first loan payment is made? (Please present your answers by rounding up to thousands and use thousands as unit of measurement. For example the answer 250920 should be written as 251)

4. A U.S. company borrows HK$1,000,000 from a Hong Kong bank on November 1, 2019, when...

4. A U.S. company borrows HK$1,000,000 from a Hong Kong bank on November 1, 2019, when the spot rate is $0.127/HK$. The loan carries an interest rate of 3%, and principal and interest are due on April 1, 2020, in Hong Kong dollars. The spot rate on December 31, the company’s year-end, is $0.128/HK$. On April 1, the company pays principal and interest to close the loan. The spot rate on April 1 is $0.124/HK$. The average spot rate for...

Comparative financial statements for The Cullumber Company Ltd. are shown below. THE CULLUMBER COMPANY LTD. Income...

Comparative financial statements for The Cullumber Company Ltd. are shown below. THE CULLUMBER COMPANY LTD. Income Statement Year Ended December 31 2021 2020 Net sales $1,779,530 $1,819,610 Cost of goods sold 1,091,290 1,028,920 Gross profit 688,240 790,690 Operating expenses 521,960 422,530 Profit from operations 166,280 368,160 Interest expense 25,650 18,630 Profit before income tax 140,630 349,530 Income tax expense 42,189 104,859 Profit $98,441 $244,671 - / 1 View Policies Current Attempt in Progress Comparative financial statements for The Cullumber Company...

On November 1, 2018, Company borrowed $30,000 from a bank 1) sign a 12-month, 6% interest...

On November 1, 2018, Company borrowed $30,000 from a bank 1) sign a 12-month, 6% interest bearing note with interest and principal due on October 31, 2019. What should the company report on B/S, I/S and Statement of cashflow on Dec 31, 2018 and Dec 31, 2019?( Interest on the interest bearing notes is compounded monthly). 2) sign a 12-month, 6% non-interest bearing note due on October 31, 2019. What should the company report on B/S, I/S and Statement of...

Suppose on January 1, 2017, a company borrows $50,000 from a bank at a 5 percent...

Suppose on January 1, 2017, a company borrows $50,000 from a bank at a 5 percent annual rate, with principal and interest payment due at the end of 2018. On January 1, 2017, it also acquires furniture with a ten-year useful life and no salvage value for $40,000. On June 30, 2018, it sells the furniture for an $2,000 gain. What are the operating, investing, and financing cash flows associated with these transactions in (1) 2017 and (2) 2018?

In order to purchase manufacturing equipment, a company borrows $1,118,000 from a bank. The bank charges...

In order to purchase manufacturing equipment, a company borrows $1,118,000 from a bank. The bank charges an interest rate of 3.00% per year, compounded annually. After 3 years the company repays the bank in one single payment. a) How much money is the company required to pay the bank? b) How much of the money the company pays the bank is due to interest charges?

On November 1, 2018, Company borrowed $30,000 from a bank sign a 12-month, 6% interest rate...

On November 1, 2018, Company borrowed $30,000 from a bank sign a 12-month, 6% interest rate the first payment due on December 1, 2018. What should the company report on B/S, I/S and Statement of cashflow on Dec 31, 2018 and Dec 31, 2019?

Subjects