19-2. On March 1, 20x1, Denver Mining issued a $150,000, 6-month, noninterest-bearing note at a 7% discount rate to fund a geological survey. The loan was made by Metro Bank. Required: 1) Prepare the appropriate journal entry on March 1, 20x1 for Metro Bank. 2) Prepare the appropriate journal entry(s) on July 31, 20x1 (for interest and the collection of the note at maturity) for Metro Bank
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- (1) On October 1, 20x1, Metro Bank loaned $8,000,000 and received a 5-month promissory note with 10% interest payable at maturity. Metro's fiscal year ends on December 31.(2) Metro recorded accrued interest on December 31, 20x1.(3) Metro received the promissory note on the March 1, 20x2 due date.Required: prepare the appropriate journal entries.On November 1, 20X1, Morant Corp. borrowed $80,000 in cash by signing a nine-month, 12% note from a local bank. The note’s face value plus interest is due on August 1, 20X2. The November 1, 20X1, journal entry is shown in the general journal below. Required: In the journal below, prepare the 12/31/X1 and 8/1/X2 journal entries related to this note. Note: Round all interest calculations to the nearest whole month and whole dollar. Do not show decimals or cents in numerical responses. Date Debit Credit 11/1/X1 Cash 80,000 Note Payable 80,000 12/31/X1 AnswerCashInterest ExpenseInterest PayableNote Payable Answer AnswerCashInterest ExpenseInterest PayableNote Payable Answer 8/1/X2 AnswerNote Payable Cash Answer AnswerInterest PayableCashRetained Earnings Answer AnswerInterest ExpenseAccounts PayableDeferred Revenue Answer AnswerCashNote PayableInterest ExpenseInterest PayableRetained Earnings…Grayson Bank agrees to lend the Trust Company $98,759 on January 1. Trust Company signs a $98,759, 8%, 9-month, interest-bearing note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is: Select the correct answer. A. Interest Expense$5,926 Cash$92,833 Notes Payable$98,759 B. Cash$107,648 Interest Expense$5,926 Notes Payable$98,759 Interest Payable$2,963 C. Cash$104,685 Interest Expense$5,926 Notes Payable$98,759 D. Cash$98,759 Notes Payable$98,759
- On September 1, 20X1, Chabon Corp. purchased machinery costing $20,000 by issuing a 12-month, 12%, promissory note to the seller. The note's principal plus interest will be paid when the note matures on September 1, 20X2. Interest calculations are rounded to the nearest whole month. Required: Record the September 1, 20X1 transaction, the year-end adjustment for interest, and the loan repayment on September 1, 20X2.Grayson Bank agrees to lend the Trust Company $109,296 on January 1. Trust Company signs a $109,296, 10%, 9-month, interest-bearing note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is: Select the correct answer. Interest Expense$8,197 Cash$101,099 Notes Payable$109,296 Cash$121,592 Interest Expense$8,197 Notes Payable$109,296 Interest Payable$4,099 Cash$117,493 Interest Expense$8,197 Notes Payable$109,296 Cash$109,296 Notes Payable$109,296On November 1, 2018, Quantum Technology, a geothermal energy supplier, borrowed $16 million cash to funda geological survey. The loan was made by Nevada BancCorp under a noncommitted short-term line of creditarrangement. Quantum issued a nine-month, 12% promissory note. Interest was payable at maturity. Quantum’sfiscal period is the calendar year.Required:1. Prepare the journal entry for the issuance of the note by Quantum Technology.2. Prepare the appropriate adjusting entry for the note by Quantum on December 31, 2018.3. Prepare the journal entry for the payment of the note at maturity
- continue to collect the assigned accounts receivable. On December 1, 2020, Solvent Company assigned specific accounts receivable totaling P5,000,000 as collateral on a P4,000,000 12% note from a certain bank. The entity will Problem 8-14 (IAA) addition to the interest on the note, the bank also charged 506 finance fee deducted in advance on the asigned accounts. The December collections of assigned accounts receivable amounted to P2,000,000 less cash discount of P200,000. On December 31, 2020, the entity remitted the collections to the bank in payment for the interest accrued on December 31, 2020 and the note payable. The entity accepted sales returns of P100,000 on the assigned accounts and wrote off assigned accounts of P300,000. 1. What amount of cash was received from the assignment of accounts receivable on December 1, 2020? a. 4,000,000 b. 3,800,000 c. 4,750,000 d. 3,750,000 2. What is the carrying amount of note payable on December 31, 2020? a. 1,840,000 b. 2,140,000 c.…On May 10, 20X1, Washington Company received a 90-day, 8 percent, $8,400 interest-bearing note from Whitehead Company in settlement of Whitehead's past-due account. On June 30, Washington discounted this note at City Bank and Trust. The bank charged a discount rate of 13 percent. On August 8, Washington received a notice that Whitehead had paid the note and the interest on the due date. Required: Prepare the entries in general journal form to record these transactions. Analyze: If the company prepared a balance sheet on July 31, 20X1, how should Notes Receivable-Discounted be presented on the statement?BE11-2 Peralta Company borrows $60,000 on July 1 from the bank by signing a $60,000, 10%, one-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (b) Prepare the journal entry to record accrued interest at December 31, assuming adjust- ing entries are made only at the end of the year.
- Leach Company borrowed $95,000 cash by issuing a note payable on June 1, Year 1. The note had an 6 percent annual rate of interest and a one-year term to maturity. Required: a. What amount of interest expense will Leach recognize for the year ending December 31, Year 1? b. Record the issue of notes payable and recognition of interest on December 31, Year 1, in the accounting equation for Year 1. c. What amount of cash will Leach pay for interest expense in Year 1? d. What is the amount of interest payable as of December 31, Year 1? e. What amount of cash will Leach pay for interest expense in Year 2? f. What amount of interest expense will Leach recognize in Year 2? g. What is the amount of interest payable as of December 31, Year 2? -3. On January 1, Esly Company obtained a $125,000, 7-year 5% installment note from Farmers Bank. The note requires annual payments of $21,602, with the first payment occurring on the last day of the fiscal year. (a) Prepare an amortization schedule for Year 1 and Year 2 Date January 1 carrying amount Note payment Interest expense Decrease in Notes payable (b) Journalize the following entries: a. Issued the installment notes for cash on January 1. Dec 31 carrying amountBencorp issues a $90,000, 6-month, noninterest-bearing note that the bank discounted at a 10% discount rate. Required: 1. Prepare the appropriate journal entry to record the issuance of the note. 2. Determine the effective interest rate. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry to record the issuance of the note. (If no entry is required for a tr journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the issuance of $90,000, 6-month, non-interest-bearing note issued at a 10% discount rate. Note: Enter debits before credits.