Bondi Bank agrees to lend Tawonga Construction Company Ltd $200 000 on 1 January. Tawonga Construction Company Ltd signs a $200 000, 4%, 9-month note. The entry made by Tawonga Construction Company Ltd on 1 January to record the proceeds and issue of the note is: O Dr Interest Expense 6 000 Dr Cash 194 000 Cr Notes Payable 200 000 O Dr Cash 200 000 Cr Notes Payable 200 000 O Dr Cash 200 000 Dr Interest Expense 6 000 Cr Notes Payable 206 000 O Dr Cash 200 000 Dr Interest Expense 6 000 Cr Notes Payable 200 000 Cr Interest Payable 6 000
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- 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.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. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.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
- 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$109,296West County Bank agrees to lend Cullumber Company $280000 on January 1. Cullumber Company signs a $280000, 6%, 6-month note. The entry made by Cullumber Company on January 1 to record the proceeds and issuance of the note is Interest Expense 4200 Cash 275800 Notes Payable 280000 Cash 280000 Interest Expense 8400 Notes Payable 288400 Cash 280000 Notes Payable 280000 Cash 280000 Interest Expense 8400 Notes Payable 280000 Interest Payable 8400Grayson 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
- Admire County Bank agrees to lend Swifty Brick Company $591000 on January 1. Swifty Brick Company signs a $591000, 8%, 9- month note. The entry made by Swifty Brick Company on January 1 to record the proceeds and issuance of the note is O O Cash Interest Expense Notes Payable Cash Notes Payable Interest Expense Cash Notes Payable Cash Interest Expense Notes Payable Interest Payable 591000 35460 591000 35460 555540 591000 35460 626460 591000 591000 591000 35460West County Bank agrees to lend Wildhorse Co. $472000 on January 1. Wildhorse Co. signs a $472000, 6%, 6-month note. What entry will Wildhorse Co. make to pay off the note and interest at maturity assuming that interest has been accrued to June 30? Notes Payable 486160 Cash 486160 Interest Payable 7080 Notes Payable 472000 Interest Expense 7080 Cash 486160 Notes Payable 472000 Interest Payable 14160 Cash 486160 Interest Expense 14160 Notes Payable 472000 Cash 486160Moss County Bank agrees to lend the Blossom Company $320000 on January 1. Blossom Company signs a $320000, 6%, 9-month note. The entry made by Blossom Company on January 1 to record the proceeds and issuance of the note is Cash 320000 Interest Expense 14400 Notes Payable 320000 Interest Payable 14400 Cash 320000 Interest Expense 14400 Notes Payable 334400 Interest Expense 14400 Cash 305600 Notes Payable 320000 Cash 320000 Notes Payable 320000 Save for Later
- Admire County Bank agrees to lend Bonita Brick Company $609000 on January 1. Bonita Brick Company signs a $609000, 8%, 9- month note. What entry will Bonita Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30? O O Notes Payable Cash Notes Payable Interest Payable Cash Interest Expense Notes Payable Cash Interest Payable Notes Payable Interest Expense Cash 645540 609000 36540 36540 609000 24360 609000 12180 645540 645540 645540 645540Moss County Bank agrees to lend the Pharoah Company $395000 on January 1. Pharoah Company signs a $395000, 6%, 9-month note. The entry made by Pharoah Company on January 1 to record the proceeds and issuance of the note is Cash 395000 Interest Expense 17775 Notes Payable 412775 Cash 395000 Interest Expense 17775 Notes Payable 395000 Interest Payable 17775 Cash 395000 Notes Payable 395000 Interest Expense 17775 Cash 377225 Notes Payable 395000Taylor Bank lends Guarantee Company $150,000 on January 1. Guarantee Company signs a $150,000, 8%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is a. Cash 150,000 Notes Payable 150,000 b. Notes Payable 120,000 Interest Payable 7,200 Cash 120,000 Interest Expense 7,200 c. Interest Expense 12,000 Cash 138,000 Notes Payable 150,000 d. Cash 162,000 Interest Expense 12,000 Notes Payable 150,000