Ask question

Ask question

All categories

3 years ago

15

Entries for notes payable Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account. Assume a 360

-day year.
a. If the note is issued with a 45-day term, journalize the entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
b. If the note is issued with a 90-day term, journalize the entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.

1 answer:

Ber [7]3 years ago

7 0

Answer:

The Journal entries are as follows:

(a)

(i) Account payable A/c Dr. $100,000

To Notes payable $100,000

(To record issue notes payable)

(ii) Notes payable A/c Dr. $100,000

Interest expense A/c Dr. $875

To cash A/c $100,875

(To record payment of notes)

Workings:

Interest expense = 100,000 × 7% × (45/360)

= $875

(b)

(i) Account payable A/c Dr. $100,000

To Notes payable $100,000

(To record issue notes payable)

(ii) Notes payable A/c Dr. $100,000

Interest expense A/c Dr. $1,750

To cash A/c $101,750

(To record payment of notes)

Workings:

Interest expense = 100,000 × 7% × (90/360)

= $1,750

You might be interested in

A trial judge in Nevada is wondering whether to enforce a surrogate motherhood contract. Penelope Barr, of Reno, Nevada, has con

jeka57 [31]

Solution :

It is a case of surrogacy issue.

Here in the context, Penelope and Goldberg signed a contract individually for entering in to a surrogacy contract where Penelope Barr will be the surrogate mother for Mr. and Mrs. Goldberg. Under this contract, Penelope had taken $ 20,000 at the staring and will be paid another $ 20,000 after she delivers the baby and hands it over to the Goldberg family.

But after giving birth, Penelope did not wished to hand over the baby to Goldberg family as per the contract signed.

Penelope breached the contract which is illegal.

A trial judge of Nevada is finding it difficult to come to a conclusion and enforce the contract of surrogate motherhood. As surrogacy is legal in Nevada, and according to the contract signed between the two parties, Penelope should give the child to Mr. and Mrs. Goldberg.

In this case, none of the "precedents" must be followed. But the judge can adopt the valuable reasoning of these states court only if the judge finds the reasoning persuasive.

6 0

3 years ago

Jessica is required to follow a forty-hour work schedule from 9:00 in the morning and ends at 5:00 each day, every week. However

HACTEHA [7]

Answer: Variable work schedule

Explanation:

Variable work schedule is a work schedule that is not fixed. Variable work schedule is a way through which the employees cover their work schedule in cases whereby they don't come to work for certain days.

In the question, Jessica is expected to work for forty-hours every week and her work schedule is from 9:00a.m to 5:00p.m. If she takes a day off, she has to make up for the day used by working extra hours. This is a variable work schedule.

7 0

3 years ago

William carefully looked over a _____ before he signed it and moved into his new apartment.

Aleks04 [339]

I believe it's LEASE

Let me know if this is right!(:

5 0

4 years ago

stock in ombor medical supplies earns a return of 5.3% annually, while bonds issued by ombor medical supplies earns a return of

cluponka [151]

Bonds will generate $26.40 more income than equities do.

<h3>How is the stock return determined?</h3>

An investment's return on investment (ROI) provides a general indication of its profitability. In order to calculate ROI, subtract the investment's initial cost from its final value, divide the result by the cost of the investment, and then multiply the result by 100.

assuming that the rates remain constant for six years.

If you invest a total of $2,400 in ombor medical dollars, you will receive an annual return of 4.1% on bonds issued by ombor medical supplies and a 5.3% annual return on stock in ombor medical supplies.

The sum will equal $ in six years.

Bonds have a higher yield than equities, as is evident.

Therefore, the difference is $.

Bonds will therefore earn $26.40 more than equities over the long term.

To know more about stock return visit:-

brainly.com/question/13807835

#SPJ4

5 0

2 years ago

Candy and Sarah own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase t

Natalka [10]

Answer:

The correct answer is Cash and Carry.

Explanation:

Cash and carry ("Buy (take) and take (it)") is considered a commercial formula similar to an economato, evolved from traditional wholesale, with the particularity of addressing only and exclusively professionals (independent retailers and hoteliers) and operate on a free service basis. The retailer travels to the location of the wholesaler, chooses the items he needs, pays them and transports them, in front of the conventional procedure of placing the order to the wholesaler, so that he can transport it and serve it in the establishment of the retailer.

The concept of "Cash and Carry, wholesale self-service", is a commercial formula adapted to the needs of certain retailers, restaurants, cafes, hotels and other service providers, such as some institutions (HoReCa Sector, Hotels-Restaurants-Caterers). It is basically designed for professionals in the HoReCa sector, but it also accepts clients that are large consumers, such as institutions or educational centers.

In summary:

It is a wholesaler; that is, it never sells to an end consumer. To access a Cash and carry establishment, you must have a card or identification that proves the status of a retailer.

It has a commercial policy based on price and continuous offers.

Know your customers, their consumption and needs well.

4 0

3 years ago