Question: On December 11, 2016, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a $12,000, 60-day note. Required: Prepare the

On December 11, 2016, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a $12,000, 60-day note.

Required:
Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2016, and the customer’s repayment on February 9, 2017, assuming:
1. Interest of 12% was assessed in addition to the of the note.
2. The note was issued as a $12,000 non-interest-bearing note with a present value of $11,765. The implicit interest rate on the note receivable was 12%. Assume a 360 day year. (Round to the nearest dollar.)

Step by Step Solution

★★★★★

3.35 Rating (179 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 2 2016 Dec 2017 Feb 11 Notes Receivable Sale... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

524-B-A-C-R (3254).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

On December 1 of Year 1, Lorien Company made a credit sale to a Thai company. The amount of the sale was 100,000 Thai baht. Lorien will collect the account on January 1 of Year 2. On December 1, the...

On May 8, 2011, Jett Company (a U.S. company) made a credit sale to Lopez (a Mexican company). The terms of the sale required Lopez to pay 800,000 pesos on February 10, 2012. Jett prepares quarterly...

On May 8, 2013, Jett Company (a U.S. company) made a credit sale to Lopez (a Mexican company). The terms of the sale required Lopez to pay 800,000 pesos on February 10, 2014. Jett prepares quarterly...

On December 11, 2013, Hooper Inc. made a credit sale to Trotter Company and required Trotter to sign a $12,000, 60-day note. Required: Prepare the journal entries necessary to record the receipt of...

On December 11, 2016, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a $27,000, 60-day note. Required: Prepare the journal entries necessary to record the receipt of...

On December 11, 2016, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a $15,000, 60-day note. Required: Prepare the journal entries necessary to record the receipt of...

Instructions On December 11, 2016, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a $21,000, 60-day note. by h Required: Prepare the journal entries necessary to...

I am not sure how the final entry could be any other number since it needs to equal $313. Interest-Bearing and Non-Interest-Bearing Notes Instructions On December 11, 2019, Hooper Inc. made a credit...

After the presentation of your report on the examination of the financial statements to the board of directors of Savage Publishing Company, one of the new directors says he is surprised the income...

Expressions for the Maxwell speed distribution for molecules in a gas are given in Chapter 19. (a) Show that the most probable energy is given by Verify this result with the energy distribution curve...

Community Chest ( CC ) is a not - for - profit charitable organization serving domestic violence victims in Ontario's York Region since 2 0 1 1 . It is now January 2 0 2 4 . You, CPA, have been an...

How are impersonal interests different from activities such as watching television? How is watching television different from going to the theater to watch a play?

On January 1, 2019, Park Company accepted a $36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park $200,000 and had a...

On January 1, 2019, Gatrong Corporation purchased 12%, 5-year Fleming Corporation bonds with a face value of $200,000. It expects to hold these bonds until maturity. The bonds pay interest...

On July 1, 2019, Wolfpack Corporation purchased securities which it intends to buy and sell frequently. These securities consisted of Todd Corporation 10%, 5-year bonds with a face value of $20,000...

Many fast food restaurant chains like McDonalds and others have some stores which are directly owned by the company (McDonalds) which hires a manager and staff to manage the restaurants, and some...

The following estimated regression equation is based on 30 observations. y^=17.4+3.8x12x2+7.6x3+2.8x4 The values of SST and SSR are 1,809 and 1,762 , respectively. a. Compute R2 (to 3 decimals). b....

Expected Return Standard Deviation Stock fund ( S ) 14% 34% Bond fund ( B ) 5% 28% The correlation between the fund returns is .0214. What is the expected return and standard deviation for the...