Following are selected borrowing transactions by Campus Housing Corporation. (a) Prepare journal entries necessary to record the
Question:
Following are selected borrowing transactions by Campus Housing Corporation.
(a) Prepare journal entries necessary to record the above transactions.
(b) Prepare year-end adjusting journal entries pertinent to the above borrowing transactions.
Transcribed Image Text:
1-Jun 1-Jul 1-Oct 31-Oct 1-Nov 1-Dec Campus purchased new furniture in exchange for a $500,000 promissory note. The note was due in 6 months and bears interest at 8% per annum. Borrowed cash of $90,000, giving a $100,000 one-year note. The interest is implicit in the difference between the cash borrowed and the note's $100,000 maturity value. Campus was experiencing a temporary cash flow crunch. The company issued a $40,000 one-year note in settlement of an outstanding account payable. The note bears interest at 8% per annum. The agreement with the creditor was that Campus would repay the note as soon as possible, and the total interest would be allocated to each month based on the "rule of 78." Campus paid the note and accrued interest resulting from the October 1 transaction. Borrowed $75,000 cash from a local bank by issuing a 2-year, 6% promissory note. The interest is to be calculated based on actual days, using a 365-day year assumption. Campus paid the note and accrued interest resulting from the June 1 transaction.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
On January 1, 2019, Kelly Corporation acquired bonds with a face value of $400,000 for $387,580.27, a price that yields a 12% effective annual interest rate. The bonds carry a 11% stated rate of...
-
Dark Ale Brewery includes 1 coupon in each case of beer that it packs. A CD is offered as a premium for every 20 coupons that customers send in along with $2.00. In Year 3, Dark Ale Brewery purchased...
-
The following are selected transactions of Pendlebury Department Store Ltd. for the current year ending December 31. 1. On February 2, the company purchased goods having cash discount terms of 2/10,...
-
pthyon Carleton student ID). Add a function named find_diff() to your program that takes a 2-D list of any size containing some positive integers. Your function must find the difference between the...
-
Assume the same information as in BE8.7, but that on March 4, 2018, Searcy Corp. receives payment in full of $11,000 from Hutley Inc. after the write off. Prepare the required journal entry(ies) to...
-
Boeing just signed a contract to sell a Boeing 737 aircraft to Air France. Air France will be billed 20 million payable in one year. The current spot exchange rate is $1.05/ and the one-year forward...
-
An often-ignored concept in breach of contract is the availability, if any, of the award of punitive damages. Often, cases incorporate both breach of contract and tort actions. The tort actions...
-
For the year ended December 31, 2014, Denkinger Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries ............$200,000 Electricians wages...
-
A country produces good X using labor (L) and capital (K), and good Y using L and land (T). Unfortunately they suffer an earthquake in a major city and some of their capital stock is destroyed. a)...
-
Camo Max manufactures camouflage apparel for paintball enthusiasts. In the normal course of business, the company encounters various situations giving rise to contingencies. Evaluate the following...
-
Following are selected transactions or events of Amazon Company relating to its first month of operation. (a) Prepare any initial journal entries necessary to record the above transactions or events....
-
The Thayer Motel, Inc., opened for business on May 1, 2008. Its trial balance before adjustment on May 31 is as follows. In addition to those accounts listed on the trial balance, the chart of...
-
How do budget officers use non-financial and accrual-based cost information in the budget process?
-
The Essentials of Technical Communication (Tebeaux & Dragga), Oxford U. Press, Third Edition - Chapter 7 This chapter offers a comprehensive overview of tips, concerns, and issues associated with...
-
Write a c++ program to calculate the area of rectangle and area of triangle Input for rectangle: length, width Input for triangle: base, height .Out put Rectangle triangle Length = base= Width =...
-
You are working with a child named Vivienne. You have noticed that Vivienne often sits by herself while other children are playing she does not seem to know how to make friends or how to enter...
-
This first essay will explore one moment in your life that has come to define you as a student that is either entering college for the first time or returning to college after several attempts.
-
Mr. Sam K. Jones, a successful businessman, is considering erecting a small building on a commercial lot he owns very close to the center of town. A local furniture company is willing to lease the...
-
Write the general quadratic equation y2 - 8y - 4x + 28 = 0 in standard form. Determine the vertex, focus, and directrix of the parabola defined by this equation. Sketch a graph.
-
(a) Explain the purpose of the two accounts: Depreciation Expense and Accumulated Depreciation. (b) What is the normal balance of each account? (c) Is it customary for the balances of the two...
-
(a) Explain the purpose of the two accounts: Depreciation Expense and Accumulated Depreciation. (b) What is the normal balance of each account? (c) Is it customary for the balances of the two...
-
(a) Explain the purpose of the two accounts: Depreciation Expense and Accumulated Depreciation. (b) What is the normal balance of each account? (c) Is it customary for the balances of the two...
-
You are attempting to value a call option with an exercise price of $80 and one year to expiration. The underlying stock pays no dividends, its current price is $80, and you believe it has a 50%...
-
Stocks X and Y have the following probability distributions of expected future returns: Probability 0.1 X Y (10%) (35%) 0.2 0.4 0.2 2224 0 12 20 20 25 0.1 48 55 What are the expected returns of both...
-
2. (5 points) An all equity firm is considering the following projects: Project Y Beta 0.8 1.2 IRR 10% 12% The risk-free rate is 3% and the expected market rate premium is 8%. The firm has a beta...
Study smarter with the SolutionInn App