On June 19, The business purchases inventory of 220.000 TL including 10% VAT. The businessendorses a check for 160.000 TL and signs a 9-month note with an annual interest rate of 9% for60.000 TL. Which entry is made when the business makes the payment at maturity for the notesigned on June 19?a. 60.000 TL debit to 321-N/P; 5.400 TL debit to 780-Fin Expense and 65.400 TL credit to 100-CashO b. 60.000 TL debit to 321-N/P; 4.050 TL debit to 780-Fin Expense and 64.050 TL credit to 100-CashO c. 64.050 TL debit 321-N/P and 64.050 credit to 100-CashO d. 65.400 TL debit 321-N/P and 65.400 credit to 100-Cash

On June 19, Business purchases inventory Cost of purchase of inventory = 220000 TL Including 10% VAT…

On June 19, The business purchases inventory of 220.000 TL including 10% VAT. The business endorses a check for 160.000 TL and signs a 9-month note with an annual interest rate of 9% for 60.000 TL. Which entry is made when the business makes the payment at maturity for the note signed on June 19? O a. 60.000 TL debit to 321-N/P; 5.400 TL debit to 780-Fin Expense and 65.400 TL credit to 100- Cash O b. 60.000 TL debit to 321-N/P; 4.050 TL debit to 780-Fin Expense and 64.050 TL credit to 100- Cash c. 64.050 TL debit 321-N/P and 64.050 credit to 100-Cash d. 65.400 TL debit 321-N/P and 65.400 credit to 100-Cash

On June 19, The business purchases inventory of 220.000 TL including 10% VAT. The business endorses a check for 160.000 TL and signs a 9-month note with an annual interest rate of 9% for 60.000 TL. Which entry is made when the business makes the payment at maturity for the note signed on June 19? O a. 60.000 TL debit to 321-N/P; 5.400 TL debit to 780-Fin Expense and 65.400 TL credit to 100- Cash O b. 60.000 TL debit to 321-N/P; 4.050 TL debit to 780-Fin Expense and 64.050 TL credit to 100- Cash c. 64.050 TL debit 321-N/P and 64.050 credit to 100-Cash d. 65.400 TL debit 321-N/P and 65.400 credit to 100-Cash

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
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A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
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On October 13, The business sold merchandise for 198.000 TL (including 10% VAT) FOB Destination. The customer endorses a check for 148.000 TL and signs a 9-month note with an annual interest rate of 8% for 50.000 TL. Which entry is made when the business receives the payment at maturity for the note received on October 13? O a. 54.000 TL debit to 100-Cash and 50.000 TL credit to 121-N/R; 4.000 TL credit to 642- Interest Revenue O b. 53.000 TL debit to 100-Cash and 50.000 TL credit to 121-N/R; 3.000 TL credit to 642- Interest Revenue O c. 53.000 TL debit to 100-Cash and 53.000 TL credit to 121-N/R O d. 54.000 TL debit to 100-Cash and 54.000 TL credit to 121-N/R
On September 1, The business sold merchandise for 33.000 TL (including 10% VAT) FOB Destination. The customer endorses a check for 30.000 TL and signs a 9-month note with an annual interest rate of 6% for 3.000 TL. Which entry is made when the business receives the payment at maturity for the note received on September 1? a.3.180 TL debit to 100-Cash and 3.180 TL credit to 121-N/R b.3.180 TL debit to 100-Cash and 3.000 TL credit to 121-N/R; 180 TL credit to 642-Interest Revenue c.3.135 TL debit to 100-Cash and 3.000 TL credit to 121-N/R; 135TL credit to 642-Interest Revenue d.3.135 TL debit to 100-Cash and 3.135 TL credit to 121-N/R
On April 12, The business purchases inventory of 176.000 TL including 10% VAT. The business writes a check for 136.000 TL and signs a 9-month note with an annual interest rate of 7% for 40.000 TL. Which of the following journal entries would be made on April 12? O a. 158.400 TL debit to 153-lInventory; 17.600 TL debit to 191-D. VAT and 136.000 TL credit to 101-R. Checks; 40.000 TL credit to 321-N/P O b. 160.000 TL debit to 153-lInventory; 16.000 TL debit to 191-D. VAT and 136.000 TL credit to 103-OC&PO; 40.000 TL credit to 321-N/P O c. 176.000 TL debit to 153-lnventory and 136.000 TL credit to 103-OC&PO; 40.000 TL credit to 321-N/P O d. 158.400 TL debit to 153-lInventory; 17.600 TL debit to 191-D. VAT and 136.000 TL credit to 103-OC&PO; 40.000 TL credit to 321-N/P
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