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finlep [7]
3 years ago
12

A business issued a 120-day, 5% note for $84,000 to a creditor on account. Journalize the entries to record (a) the issuance of

the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year.
Business
1 answer:
sveta [45]3 years ago
3 0

Answer:

a. Issuance of note:

Date             Account title                                         Debit                   Credit

XX-XX          Accounts Payable                            $84,000

                    Notes Payable                                                                $84,000

b. The payment of the note at maturity, including interest. Assume a 360-day year.

Interest payment = 84,000 * 5% * 120/360

= $1,400

Date             Account title                                         Debit                   Credit

XX-XX          Note Payable                                    $84,000

                     Interest payable                               $1,400

                     Cash                                                                              $85,400

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Exercise 5-66 Bad Debt Expense: Percentage of Credit Sales Method Gilmore Electronics had the following data for a recent year:
Stels [109]

Answer:  Debit Bad debt expense $11,264, Credit Allowance for bad debt $11,264; Debit Allowance for bad debt $9,650, Credit Accounts receivable $9,650.

Explanation: Percentage of credit sales method means bad debt expense expressed as a percentage of sales.

The estimated bad debts rate is 2.2%, which translates to 2.2% of $512,000 (credit sales) = $11,264. The firm has to record this, being the estimated bad debts rate, as Debit to bad debt expense and Credit to allowance for bad debt. However, accounts receivable that was deemed uncollectible is $9,650. This amount would be taken out from the buffer in allowance account by debiting allowance for bad debt and crediting accounts receivable.

5 0
3 years ago
Mack writes a check to his maid, Marianne, in payment for services rendered. Marianne indorses the check in blank and gives the
Vilka [71]

Answer:

Mack, Marianne, and Martin

Explanation:

Based on the information provided within the question it can be said that in this scenario if the bank dishonors the check St. Mark can look for recovery from Mack, Marianne, and Martin. This is due to the fact that they all endorsed the check. This is because by endorsing the check you are signing the back of it which means that you are making it payable to someone else, and if the check is not accepted you are taking responsibility for paying that person. Which Mack, Marianne, and Martin all endorsed the check.

5 0
3 years ago
Metropolis Corporation has 4 shareholders: Fritz, Luis, Alfred and Werner. Number of shares that Fritz owns is 2/3 rd of number
Deffense [45]

Answer:

$120,000

Explanation:

Given:

Shares owned by Fritz = \frac{2}{3} of number of the shares of the other three shareholders i.e \frac{2}{2+3}=\frac{2}{5} of all the shares

Shares owned by Luis  = \frac{3}{7} of number of the shares of the other three shareholders i.e \frac{3}{3+7}=\frac{3}{10} of all the shares

Shares owned by Alfred = \frac{4}{11} of number of the shares of the other three shareholders i.e \frac{4}{4+11}=\frac{4}{15} of all the shares

Therefore,

Shares owned by them together = \frac{2}{5}+\frac{3}{10}+\frac{4}{15}

=  \frac{29}{30} of all shares,

This means that Werner owns = 1 − \frac{29}{30} of all shares,

=\frac{1}{30} of all shares

i.e

= \frac{1}{30} × $3,600,000

= $120,000

8 0
3 years ago
The following information was taken from the records of Easter Corporation for the year ended December 31, 2019. Advertising exp
kirza4 [7]

Answer:

$162,520

Explanation:

As per the given question the solution of retained earnings is provided below:-

To reach at retained earning first we need to find out the total expenses and net income which are as follows:-

Total Expenses = Advertising Expense + Income Tax Expense + Rent Expense + Supplies Expense

= $40,000 + $26,000 + $23,400 + $33,800

= $123,200

now,

Net income = Revenue - Expenses

= $200,000 - $123,200

= $76,800

So, the Retained Earnings as of December 31, 2019 = Retained Earnings of January 1, 2019 + Net Income - Dividend

= $115,720 + $76,800 - $30,000

= $192,520 - $30,000

= $162,520

5 0
3 years ago
Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occur
Evgen [1.6K]

Answer:

Explanation:

7 0
3 years ago
Read 2 more answers
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