IV. Ms.Fathima sold exclusive design ware materials to Ms.Aysha OMR 120,000 worth of goods on the 10th of February 2020 by accepting 150 days,8% interest bearing note. For one of them it was a Notes receivable while for the other it was a Notes payable. The accountants of both Ms. Fathima and Ms. Aysha made entries in the account books. Assume that you are the accountant and show by presenting a detailed table the entries you wuld make. Also show your calculations clearly for interests received and paid. Show how the transactions would be treated in the following situations. When the notes are made and accepted by both parties (i) (i) (ii) of April 2020 while Ms. Aysha wants it to be prepared on 2nd of May 2020 Honoring of the notes by the payee on the maturity date Suppose Ms. Fathima asked her accountant to prepare the final accounts on the 4th

IV. Ms.Fathima sold exclusive design ware materials to Ms.Aysha OMR 120,000 worth of goods on the 10th of February 2020 by accepting 150 days,8% interest bearing note. For one of them it was a Notes receivable while for the other it was a Notes payable. The accountants of both Ms. Fathima and Ms. Aysha made entries in the account books. Assume that you are the accountant and show by presenting a detailed table the entries you wuld make. Also show your calculations clearly for interests received and paid. Show how the transactions would be treated in the following situations. When the notes are made and accepted by both parties (i) (i) (ii) of April 2020 while Ms. Aysha wants it to be prepared on 2nd of May 2020 Honoring of the notes by the payee on the maturity date Suppose Ms. Fathima asked her accountant to prepare the final accounts on the 4th

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 48BE: Collection of Amounts Previously Written Off Hannah purchased a laptop computer from Perry Corp. for...

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Ms. Rose sold to Ms. Jasmine OMR 80,000 worth of goods on the 15th of April 2021 by accepting a 120 days,9% interest bearing note. Both Ms. Rose & Ms. Jasmine need your help in understanding how and in what way the notes receivable and the payables should be treated. Provide them with the required help by showing how the transactions would be treated in the books of both parties in the following situations. a) When the notes are accepted. b) On the maturity date, the note is honored. c) Suppose Ms. Rose prepared final accounts on the 10th of May 2021. d) Following the above situation, the bill is met on maturity. e) The note was dishonored on the maturity date by Ms. Jasmine.
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S. Waweru starts business on 1st July 2020, when he deposits Shs. 18,000 into his business bank account and Shs. 2,500 in his cash account. During the month of July, he undertakes the following transactions:- 2020 July 3 He purchases shop fittings for sh. 2,500 and pays by cheque. July 4 He buys a motor vehicle from AB & Co. on credit Sh. 3,000. July 6 He buys stock for Sh. 1,500 and pays through bank. July 8 He sells goods for cash Sh.1,000. July 10 Buys goods on credit from XY & Co. for Sh. 1,200 July 12 Sells goods to A. Smith for Sh. 900 on credit July 13 Pays wages Sh. 120 by cash July 14 A. Smith returns goods worth Sh. 200 July 15 Pays to AB & Co. Sh. 3,000 by cheque July 17 Goods returned to XY & Co. amounting to Sh. 350 July 21 Receives from A. Smith a cheque for Sh. 700 July 25 Sells goods for cash Sh. 300. July 30…
On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $121,800 on December 31, 2022. The proceeds of the note were $114,600. Record the journal entry to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Record the journal entry to show the effects of recording interest expense for the month of September. Record the journal entry to show the effects of repaying the note on December 31, 2022.
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