Journalize the following transactions (assume a 360-day year when calculating interest):

Business

1 answer:

RUDIKE [14]4 years ago

7 0

Answer:

Mar. 1 Received a 90-day, 10% note for $24,000, dated March 1, from Batson Co. on account.

Dr Notes receivable 24,000

Cr Accounts receivable 24,000

May 30 The note of March 1 was dishonored.

Dr Accounts receivable 24,600

Cr Notes receivable 24,000

Cr Interest revenue 600

If the note would have been collected (paid by Batson Co.), the journal entry would have been:

May 30, note collected from Batson Co.

Dr Cash 24,600

Cr Notes receivable 24,000

Cr Interest revenue 600

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The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,460,000, $152,000 in the common stock account,

elixir [45]

Answer:

Follows are the solution to this question:

Explanation:

Formula:

$\text{Asset cash flow = creditors cash flow + equity cash flow}\\\\ \text{creditors cash flow = payment of interest-net new loans}\\\\ \text{Cash flow to lenders = interest charged}-( LTD_{end}-LTD_{beg}) \\$

$\text{Cash flow} =100000 -(1700000- 1460000) = - \$ 140,000 \\$

$\text{Shareholder cash flow = paid dividends-net new shares} \\\\\text{Cash flow = interest paid - (Common} + APIS_{end})- \text{(Common +} APIS_{beg}))\\\\$