Dold Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldsons 2-year, $20,000, zero-interest-bearing note. The implied interest rate
Question:
Dold Acrobats lent $16,529 to Donaldson, Inc., accepting Donaldson’s 2-year, $20,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare Dold’s journal entries for the initial transaction, recognition of interest each year, and the collection of $20,000 at maturity.
Step by Step Answer:
Notes Receivable Discount on Notes Receivable Ca...View the full answer
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Accounting questions
-
Prepare year-end adjusting journal entries for M&R Company as of December 31, 2017, for each of the following separate cases. (Entries can draw from the following partial chart of accounts: Cash;...
-
Prepare the general journal entries for the State of North Dakota to properly record each of the following transactions and events in the appropriate general ledger accounts of the appropriate funds...
-
Lester company received a seven-year zero interest bearing note on February 22nd 2014 in exchange for property and sold it to porter company,there was no established Exchange price for the property...
-
Joseph Thompson is president and sole shareholder of Jay Corporation. In December 2019, Joe asks your advice regarding a charitable contribution he plans to have the corporation make to the...
-
1. For each of the following items, indicate whether its amount (i) Affects the bank or book side of a bank reconciliation and (ii) Represents an addition or a subtraction in a bank reconciliation....
-
When Collingwood Corp. issued its 60-day commercial paper the promised yield was 9 percent, whereas the 60-day T-bill yield was 6 percent. There is a 2-percent chance that Collingwood will default on...
-
A purchase of merchandise for $300 with a trade discount of 10% would require a debit to Purchases of (a) $330. (c) $297. (b) $300. (d) $270.
-
Subsequent Events your firm has been engaged to examine the financial statements of Alma den Corporation for the year 2010. The bookkeeper who maintains the financial records has prepared all the...
-
Marvel Parts, Incorporated, manufactures auto accessories. Oneof the company??s products is a set of seat covers that can beadjusted to fit nearly any small car. The company uses a standardcost sy 2...
-
Consider the following 0x86 program: .data array DWORD 1,2,3,4,5,6,7,8,9 aravSize -(S-array)/4 ; array .code main PROC mov ecx,arraySize-1 mov esi.OFFSET array L1: mov eax. [esi] sda mov bx,2 idiv bx...
-
Milner Family Importers sold goods to Tung Decorators for $30,000 on November 1, 2010, accepting Tungs $30,000, 6-month, 6% note. Prepare Milners November 1 entry, December 31 annual adjusting entry,...
-
On October 1, 2010, Chung, Inc. assigns $1,000,000 of its accounts receivable to Seneca National Bank as collateral for a $750,000 note. The bank assesses a finance charge of 2% of the receivables...
-
Lisa has an estate worth $3.21 million, and three children who will receive her assets on her death. Should she create a will, given that her estate is worth less than the threshold that is exempt...
-
Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following costs of producing the 9,800 units of the part that are needed every year. Direct...
-
Find a good virtual speech video; find a bad virtual speech video. Post the links, then explain the following on both types: What made the good virtual speech, good? Why? Name one or two...
-
Peta Barend earns 33,000 a year working for a textile company as an engineer. She is considering the possibility of leaving the company and starting her own business. To do this, she will have to use...
-
Ginny's books orders their inventory from a Tyke's distributors. If she orders under 20 books she pays cost, if she orders 21-50 books it is 5% off cost, if she orders 51-100 books she pays 30% off...
-
Freezone Ltd makes 30,000 units per year of part FZ320 used in the range of electrical goods it manufactures. The unit costs of this part are as follows; 24.70 16.30 2.30 13.40 Total 56.70 Direct...
-
Consider a steady, laminar, fully developed, incompressible flow between two infinite plates, as shown. The flow is due to the motion of the left plate as well a pressure gradient that is applied in...
-
What are the three kinds of research types? Explain each type.
-
What is a floating bus?
-
The financial statements of General Mills, Inc. report net sales of $12,442,000,000. Accounts receivable are $912,000,000 at the beginning of the year and $953,000,000 at the end of the year. Compute...
-
The financial statements of General Mills, Inc. report net sales of $12,442,000,000. Accounts receivable are $912,000,000 at the beginning of the year and $953,000,000 at the end of the year. Compute...
-
Fin man Company designated Jill Holland as petty cash custodian and established a petty cash fund of $200. The fund is reimbursed when the cash in the fund is at $15. Petty cash receipts indicate...
-
Tom and Beth have exactly 2 year left on their 5 year, 4.80% fixed rate mortgage term with an outstanding balance of $385,000. The current interest rate for a 2 year mortgage is 4.25%. Tom and Beth's...
-
Mercantilism maintained that government regulation of trade was a. necessary to prevent wealthy countries from taking advantage of poorer countries b. not justified because it interfered with the...
-
Before Prudhoe Bay was discovered. Alaska had a tax on oil production. The tax was: a.) A small % of gross value of the oil b.) 25% of gross value of the oil c.) A small percent of the net profits of...
Study smarter with the SolutionInn App