In the trial balance for March, you see that Notes Receivable-Fast Feet Co. has a negative...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In the trial balance for March, you see that Notes Receivable-Fast Feet Co. has a negative balance of $105, which would seem to indicate that Fast Feet paid too much. Looking back through the journal entries for March, you find that on March 19 the accounting intern recorded receipt of $2,730 in payment of this note receivable. Further investigation reveals that on November 19, 20Y7, this note receivable was received from Fast Feet Co. for $2,625. You can find no additional information about this note in the accounting records. Assume a 360 day year. Using the preceding information, compute the term and the interest rate of the note receivable from Fast Feet. 1. Term of the note: days 2. Interest rate of the note: % 3. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 20Y7. Assume that the entry on November 19, 20Y7 is correct. If an amount box does not require an entry, leave it blank. Round all amounts to the nearest dollar. Show credit and debit Dec. 31 4. Journalize the entry needed to record collection of the note at maturity on March 19, 20Y8. Assume that the entry on November 19, 20Y7 is correct. If an amount box does not require an entry, leave it blank. Round all amounts to the nearest dollar. In the trial balance for March, you see that Notes Receivable-Fast Feet Co. has a negative balance of $105, which would seem to indicate that Fast Feet paid too much. Looking back through the journal entries for March, you find that on March 19 the accounting intern recorded receipt of $2,730 in payment of this note receivable. Further investigation reveals that on November 19, 20Y7, this note receivable was received from Fast Feet Co. for $2,625. You can find no additional information about this note in the accounting records. Assume a 360 day year. Using the preceding information, compute the term and the interest rate of the note receivable from Fast Feet. 1. Term of the note: days 2. Interest rate of the note: % 3. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 20Y7. Assume that the entry on November 19, 20Y7 is correct. If an amount box does not require an entry, leave it blank. Round all amounts to the nearest dollar. Show credit and debit Dec. 31 4. Journalize the entry needed to record collection of the note at maturity on March 19, 20Y8. Assume that the entry on November 19, 20Y7 is correct. If an amount box does not require an entry, leave it blank. Round all amounts to the nearest dollar.
Expert Answer:
Answer rating: 100% (QA)
Step 1 Calculate the Term of the Note Term Maturity date Issuance date Given Issuance date November ... View the full answer
Related Book For
Project Management The Managerial Process
ISBN: 9781260570434
8th Edition
Authors: Eric W Larson, Clifford F. Gray
Posted Date:
Students also viewed these accounting questions
-
You have just been hired as the accountant for Fan-Tastic Sports Gear, a wholesaler of sporting goods and apparel. The previous accountant left abruptly, and an accounting intern has been drafting...
-
The trial balance for ShirtCraft, Inc., at January 31 is shown as follows: During February the following transactions occurred: Feb. 1 Billed customers $2,500 for services rendered. 1 Paid $150...
-
Classify the archaeal domain based on their ssrRNA analysis.
-
Host A has a file of 49.5Kbytes to send to host C and host B has a file of 70.5Kbytes to send to host D, both using TCP. TCP connection 1 from A to C and TCP connection 2 from B to D share one...
-
Consider a steady-flow heat exchanger involving two different fluid streams. Under what conditions will the amount of heat lost by one fluid be equal to the amount of heat gained by the other?
-
Quentin Giordano owns a small retail ice cream parlor. He is considering expanding the business and has identified two attractive alternatives. One involves purchasing a machine that would enable Mr....
-
Conventional accounting provides information about a cluster of financial circumstances that are of concern to all stakeholders.What are these circumstances?
-
Suppose your cookie company is now a corporation that has granted franchises to more than 50 stores. Currently, only 10 of the 50 stores have computerized machines for mixing cookie dough. Because of...
-
Compare how changes in the thermal efficiency of a heat transfer process can affect the behavioural characteristics of a mechanical system.
-
Gibson Agency Case: 1. Calculate and present the budgeted profit for each of Gibson's clients for each of the years 2016 through 2019, using the current costing system (i.e., the one described in the...
-
Integrated Concepts Police radar determines the speed of motor vehicles using the same Doppler- shift technique employed for ultrasound in medical diagnostics. Beats are produced by mixing the double...
-
Any given strategic risk can have a number of implications for the audit process. Describe the general audit implications discussed in the chapter.
-
What is external risk analysis, and how does it help the auditor to better understand the residual risks associated with the classes of transactions, accounts, and disclosures?
-
What is a risk map? What value can an auditor derive from plotting strategic risks on a risk map?
-
Give five examples of the potential indications of weak strategic management, and discuss their respective audit implication(s).
-
Explain what procedures are involved in strategic analysis, process risk analysis, and residual risk analysis.
-
Lakeway Manufacturing Co. manufactures and sells household cleaning products. The company's research department has developed a new cleaner for which a standard cost must be determined. The new...
-
Calculate the electrical conductivity of a fiber-reinforced polyethylene part that is reinforced with 20 vol % of continuous, aligned nickel fibers.
-
What kinds of estimates are best suited for this method?
-
Cerberus is a successful producer of specialty chemicals. It operates nine large campus sites in the United States, with a number of different business units on each site. These business units...
-
The G&E Company is preparing a bid to build the new 47,000-seat Shoreline baseball stadium. The construction must start on June 10, 2019, and be completed in time for the start of the 2022 season. A...
-
The man has a mass of 78 kg and stands motionless at the end of the diving board. If the board has the cross section shown, determine the maximum normal strain developed in the board. The modulus of...
-
The steel rod having a diameter of 1 in. is subjected to an internal moment of M = 300lbft. Determine the stress created at points A and B. Also, sketch a three-dimensional view of the stress...
-
The steel beam has the cross-sectional area shown. If w=5 kip/ft, determine the absolute maximum bending stress in the beam. W 8 8 ft- 8 ft W ft- -8 ft- .8 in. 0.30 in. 0.3 in.- 10 in. 0.30 in.
Study smarter with the SolutionInn App