Business, 11.02.2020 00:28 elliedeegan3910

Kelly Jones and Tami Crawford borrowed $13,200 on a 7-month, 5% note from Gem State Bank to open their business, Crane’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023.

Answers: 2

Show answers

Answers

Answer from: leasincobe4327

A) Prepare the entry to record the receipt of funds from the loan

Dr Cr

$ $

Cash 13,200

Notes Payable 13,200

Being the receipt of funds from the ban

B) Prepare the entry to accrue the interest on June 30

Dr Cr

$ $

Interest Expense (13200 * 0.05 * 1/12) 55

Interest Payable 55

Being accrued interest as at month end June 30

C) Assuming the adjusting entries are made at the end of each month, determine the balance in the interest payable account as at December 31, 2020

= Monthly accrued interest * number of months = 55 * 7 = $385

D) Prepare the entries required on January 1, 2023 when the loan is paid back:

Dr Cr

$ $

Notes Payable 13,200

Interest Payable 385

Cash 13,585

Being refund of loan

Explanation:

Answer from: Quest

explanation:

Answer from: Quest

Government ownership and control of resources

Another question on Business

Business, 22.06.2019 22:40

Johnson company uses the allowance method to account for uncollectible accounts receivable. bad debt expense is established as a percentage of credit sales. for 2018, net credit sales totaled $6,400,000, and the estimated bad debt percentage is 1.40%. the allowance for uncollectible accounts had a credit balance of $61,000 at the beginning of 2018 and $49,500, after adjusting entries, at the end of 2018.required: 1. what is bad debt expense for 2018 as a percent of net credit sales? 2. assume johnson makes no other adjustment of bad debt expense during 2018. determine the amount of accounts receivable written off during 2018.3. if the company uses the direct write-off method, what would bad debt expense be for 2018?

Answers: 1

Answer

Business, 23.06.2019 00:00

The undress company produces a dress that women use to quickly and easily change in public. the company is just over a year old and has been successful through a kickstarter campaign. the undress company has identified a customer segment, but if it wants to reach a larger customer segment market outside of the kickstarter family, what question must it answer?

Answers: 1

Answer

Business, 23.06.2019 00:20

Barney corporation recognized a $100 million preferred stock balance on 12/31/2019. on january 1, 2020, barney issued $10 million in preferred dividends. on the same date, barney raised an additional $20 million via a new issuance of preferred stock. on december 31, 2020, the market value of the original amount of preferred shares rose $5 million. under us gaap, the 12/31/2020 year ending preferred stock balance is:

Answers: 3

Answer

Business, 23.06.2019 09:50

If art has a 7/1 arm, how long will the fixed interest rate be applied to his loan?

Answers: 3

Answer

You know the right answer?

Kelly Jones and Tami Crawford borrowed $13,200 on a 7-month, 5% note from Gem State Bank to open the...

Questions