On November 16, Jackson Lawless, Inc. made a cash loan to a customer and received a...

On November 16, Jackson Lawless, Inc. made a cash loan to a customer and

received a $ 240,000 a 60 day 10% note. What is the maturity date and the

maturity value of the note?

Give the necessary adjusting entry on December 31:

Give the journal entry for the maturity date for Jackson Lawless, Inc.

Expert Solution

a)Maturity Date : 16November + 60 days = 15 Jan

Maturity value of note = Principal amount + interest accrued

= 240000 + (240000 *10%*6/365)

= 240000+ 3945.21

= 243945.21 (rounded to 243945)

DATE	ACCOUNT TITLE	DEBIT	CREDIT
NOV 16	Note receivable	240000
	cash		240000

December 31	Interest receivable	2959
	Interest revenue		2959
	[Being interest accrued for 45 days :240000.1045/365]

15Jan (next year)	cash	243945
	Interest receivable		2959
	Interest revenue (3945-2959)		986
	Note receivable		240000

ekkarill92 answered 1 year ago

On September 1, 2020, Betty DeRose, Inc. received $45,000 cash from a customer as payment for...

On September 1, 2020, Betty DeRose, Inc. received $45,000 cash from a customer as payment for services to be performed over the next 24 months. Betty DeRose, Inc. received $45,000 cash from another customer on May 31, 2021 as payment for services to be performed over the next 18 months. Calculate the total amount of unearned revenue that would appear in Betty DeRose, Inc's December 31, 2021 balance sheet.

1. On July 31, ALOE Inc. received $5,000 cash from a customer who previously purchased ALOE's...

1. On July 31, ALOE Inc. received $5,000 cash from a customer who previously purchased ALOE's products on account. What entry should ALOE Inc. record at the time it receives cash? A) Debit Cash, $5,000; credit Service Revenue, $5,000. B) Debit Accounts Receivable, $5,000; credit Cash, $5,000. C) Debit Cash, $5,000; credit Accounts Receivable, $5,000. D) Debit Cash, $5,000; credit Accounts Payable, $5,000.

A check is received from a customer for goods supplied for cash. Which of assets liabilities...

A check is received from a customer for goods supplied for cash. Which of assets liabilities equity is not part of the transaction? Select one: a. Liabilities b. Assets c. Equity Rent for the factory premises are paid in cash. Which of assets liabilities equity is not part of the transaction? Select one: a. Liabilities b. Equity c. Assets The owner withdraws cash for personal use. Which of assets liabilities equity is not part of the transaction? Select one: a....

The questions: (1 and 2) The cash transactions and cash balances of Dodge, Inc., for November...

The questions: (1 and 2) The cash transactions and cash balances of Dodge, Inc., for November were as follows. 1. The ledger account for Cash showed a balance at November 30 of $6,750. 2. The November bank statement showed a closing balance of $4,710. 3. The cash received on November 30 amounted to $3,850. It was left at the bank in the night depository chute after banking hours on November 30 and therefore was not recorded by the bank on...

Alpha received $1,000 cash from a customer as payment to satisfy an existing account receivable but...

Alpha received $1,000 cash from a customer as payment to satisfy an existing account receivable but erroneously recorded it as a cash sale.

PROBLEM 7.1B Bank Reconciliation The cash transactions and cash balances of Dodge, Inc., for November were...

PROBLEM 7.1B Bank Reconciliation The cash transactions and cash balances of Dodge, Inc., for November were as follows: 1.) The ledger account for Cash showed a balance at November 30 of $6,750. 2.) The November bank statement showed a closing balance of $4,710. 3.) The cash received on November 30 amounted to $3,850. It was left at the bank in the night depository chute after banking hours on November 30 and therefore was not recorded by the bank on the...

Received $10000 cash from a customer invoiced 2 months ago. The journal entry to record the...

Received $10000 cash from a customer invoiced 2 months ago. The journal entry to record the transaction is: Select one: a. debit, cash $10000 and credit, accounts receivable $10000. b. debit, cash $10000 and credit, revenue $10000. c. debit, accounts receivable $10000 and credit, revenue $10000. d. debit, revenue $10000 and credit, cash $10000.

1) Deferred revenue occurs when cash is received from a customer before work or the sale...

1) Deferred revenue occurs when cash is received from a customer before work or the sale is completed. True False 2) In accrual accounting, revenue may be earned prior to or after cash is received. True False 3)An expense incurred in 2016 is not paid until 2017. Using the accrual basis of accounting, the expense should appear on: A.both the 2016 and 2017 income statements B.the 2016 income statement C.neither the 2016 nor 2017 income statement D.the 2017 income statement...

1) On October 1 of Year 1, the company made a $50,000 cash loan to another...

1) On October 1 of Year 1, the company made a $50,000 cash loan to another company. The interest rate on the loan is 13%. No cash payments will be collected on the loan until September 30 of Year 2. Which ONE of the following would be included in the ADJUSTING journal entry necessary on December 31 with respect to this loan? A) DEBIT to Interest Revenue for $6,500 B) CREDIT to Interest Revenue for $4,875 C) CREDIT to Interest...

Cash received from loans is a deposit other than customer payments. Group of answer choices True...

Cash received from loans is a deposit other than customer payments. Group of answer choices True False

Question