1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Artyom0805 [142]
3 years ago
9

On April 1, 2014, Prince Company assigns $500,000 of its accounts receivable to the Third National Bank as collateral for a $300

,000 loan due July 1, 2014. The assignment agreement calls for Prince Company to continue to collect the receivables. Third National Bank assesses a finance charge of 2% of the accounts receivable, and interest on the loan is 10% per annum(a realistic rate of interest for a note of this type).
a. Prepare April 1, 2012, journal entry for Prince Company
b. Prepare the journal entry for Prince
Business
1 answer:
Rus_ich [418]3 years ago
8 0

Answer:

The question is incomplete, the full question is:

On April 1, 2012, Prince Company assigns $500,000 of its  accounts receivables to the Third National Bank as collateral for a $300,000 loan due July 1, 2012. The assignment agreement calls for Prince Company to continue to collect the receivables. Third National Bank assesses a finance charge of 2% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type).

a) Prepare the April 1, 2012, journal entry for Prince Company.

b) Prepare the journal entry for Prince’s collection of $350,000 of the accounts receivable during the period from April 1, 2012, through June 30, 2012.

c) On July 1, 2012, Prince paid Third National all that was due from the loan it secured on April 1, 2012.

--------------------------------------------------------------------------------------------------------------

a) Prepare the April 1, 2012, journal entry for Prince Company.

Date                   Account Title                 Debit            Credit

April 1, 2012       Cash                             290,000

                           Finance Charge            10,000

                           Notes Payable                                  300,000

                          ($500,000 * 2% = $10,000)

b) Prepare the journal entry for Prince’s collection of $350,000 of the accounts receivable during the period from April 1, 2012, through June 30, 2012.

Date                   Account Title                 Debit            Credit

June 30, 2012    Cash                             350,000

                           Accounts Receivable                        350,000

c) On July 1, 2012, Prince paid Third National all that was due from the loan it secured on April 1, 2012.

Date                   Account Title                 Debit            Credit

July 1, 2012       Notes Payable              300,000

                         Interest Expense             7,500

                               Cash                                               307,500

                         (10% * 300,000 * 3/12

                                 = $7,500)

You might be interested in
What are the positive feedbacks for NEWS ANCHORS?
Alisiya [41]

Answer:

Excellent verbal, written, improvisational, and interviewing skills are imperative. Add to those qualities persistence and objectivity, physical stamina, being a team player, projecting a professional image, and having a knowledge of social media. News anchors also need to be able to think on their feet.

4 0
3 years ago
Mara is a management consultant for a soda manufacturer that wants to expand into health drinks such as green tea and after-work
kirill115 [55]

Answer:

B. "Carefully consider the entry choices over time before making a decision."

Explanation:

Since Mara company specializes in manufacturing sodas, venturing into health drinks is risky and therefore would need a lot of planning, thorough analysis of the target market . Looking into whether there's sufficient demand for it and forecasting future trends with regards to health drinks is also important . Mara should therefore, test venture into this by testing the market and considering entry choices over time before making a decision.

6 0
3 years ago
To get an idea of whether you should continue to run a search network campaign on search partner sites, you can:
ziro4ka [17]
You can separate or group the campaign's data by network and evaluate its performance on search partner sites
5 0
3 years ago
The IRS agent who audited the Form 1120 filed by Alano Inc. concluded that $300,000 of the salary that Alano paid to its CEO and
wlad13 [49]

Answer: Alano's taxable income increases by $300,000.

Explanation:

Constructive dividends are paid to a shareholder and classified in such a way that they are not to be seen as taxable dividends.

If during auditing however, the IRS determines that it was indeed a taxable dividend, it becomes a constructive dividend.

Constructive dividends are taxable by definition so Alano's taxable income increases by the amount of dividend of $300,000.

7 0
3 years ago
Veronica is thinking about getting a prepaid debit card. She has made a list of good reasons to get the card. What reason should
Anna [14]
Going out to buy things that she doesn't need in life<span />
3 0
3 years ago
Other questions:
  • Which of the following is not an example of organizational citizenship behaviour? telling your friends about the company’s great
    10·1 answer
  • During world war i, the supreme court upheld the espionage act by ruling that congress has a right to restrict speech that _____
    8·1 answer
  • You must estimate the intrinsic value of Noe Technologies’ stock. The end-of-year free cash flow (FCF1) is expected to be $27.50
    12·1 answer
  • Which of the following would an economist classify as capital? Group of answer choices lawyer's computer. $50 bill. 100 shares o
    6·1 answer
  • Which of the following statements is correct?a.An advantage of the corporate form for many businesses is the fact the corporate
    10·1 answer
  • How many warns you got<br><br><br> sub to me: chocobloxius
    12·2 answers
  • Suppose a week after you get this report from your research department, you hear on the news that Colombia and Vietnam are going
    7·1 answer
  • Tigger was terminated from the local ice cream shop as the staff manager. He did not manage by example including being rude to c
    9·1 answer
  • A person who ensures that people adhere to the definitions for the master data in their organizational units is called a(n) ____
    15·1 answer
  • Help :( Marking brainliest!! Some experts predict that there will be fewer operations management jobs in the next several years.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!