On July 1, 2017, Jo's Flower Shop borrowed $25,000 from the bank. Jo's signed a ten-month, 8%

Question:

On July 1, 2017, Jo's Flower Shop borrowed $25,000 from the bank. Jo's signed a ten-month, 8% promissory note for the entire amount. Jo's uses a calendar year-end.

Required

1. Identify and analyze the effect of the issuance of the promissory note.

2. Identify and analyze the effect of any adjustments needed at year-end.

3. Identify and analyze the effect of the payment of principal and interest.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1337491471

10th edition

Authors: Gary A. Porter, Curtis L. Norton

See More Books

Question Posted: Jun 20, 2017 08:43 AM

See More Questions

Notes Payable and Interest On July 1, 2010, Jos Flower Shop borrowed $25,000 from the bank. Jo signed a ten month, 8% promissory note for the entire amount. Jos uses a calendar year-end. Required 1....
On July 1, 2012, Jo's Flower Shop borrowed $25,000 from the bank. Jo signed a ten-month, 8% promissory note for the entire amount. Jo's uses a calendar year-end. Required 1. Identify and analyze the...
On July 1, 2014, Jos Flower Shop borrowed $25,000 from the bank. Jo signed a ten-month, 8% promissory note for the entire amount. Jos uses a calendar year-end. Required 1. Prepare the journal entry...
Rachael Ray Corporation had the following transactions. 1. Sold land (cost $12,000) for $15,000. 2. Issued common stock for $20,000. 3. Recorded depreciation of $17,000. 4. Paid salaries of $9,000....
Oak Grove Inc. has a petty cash fund of $1,500. (a) Since the petty cash fund is only $1,500, should Oak Grove Inc. implement controls over petty cash? (b) What controls, if any, could be used for...
Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per unit...
At a given location, under normal conditions a river flows with a Manning coefficient of 0.030 , and a cross section as indicated in Fig. P10.47a. During flood conditions at this location, the river...
John conducted a repeated-measures study to measure self-esteem among victims of domestic violence before and after they complete an 8-week program for abuse victims with 10 individuals. He...
1. A scientist measures a piece of steel using a scale in the lab. The scale reports out a mass of 190 grams. However, for their calculations the scientist needs the mass to be in kg. What is the...
Shown below are the investment weights for the securities held in four different portfolios: three mutual funds and the benchmark index that each of those funds uses. a. Calculate the active share...
Several accounts that appeared on Kruse's 2017 balance sheet are as follows: Accounts Payable ................................... $ 55,000 Equipment ................................................
On October 1, 2017, Ratkowski Inc. borrowed $18,000 from Second National Bank by issuing a 12-month note. The bank discounted the note at 9%. Required 1. Identify and analyze the effect of the...
Find the exact area of the surface obtained by rotating the given curve about the x-axis. x = 2t 2 + 1/t, y = 8t, 1 t 3
What are the different types of proprietary funds? Use your CAFR to discuss the proprietary funds used by your chosen government. Do any of these funds use exchange transactions? What financial...
A furniture company is considering investing in several projects to expand its business. The projects under consideration are (1) Lights and/or (2) Shelving. Both projects require an initial...
Question 8 For November 2018, COBA Ltd., a NSW-based company, has provided the following information: Monthly payment summary related to directors and senior managers: Director fees Consultancy fees...
Suppose that [e, e..... e] is a list of k integers. The following table defines some operations on such lists. Each operation works in 0(1) time. 07 08 Operation [] [e] 01 MERGE(left, right) 02 both...
What drivers of the retail industry are affecting Pick n Pay? Explain.
The decay chain of 238 U is described in some detail in the text. The other naturally occurring heavy nuclide whose decay initiates a decay chain is 232 Th. Look up the 232 Th decay chain. At what...
You are a U.S. investor who purchased British securities for 2,000 one year ago when the British pound cost U.S. $1.50. What is your total return (based on U.S. dollars) if the value of the...
For each of the following events, identify whether it is an external event that would be recorded as a transaction (E), an internal event that would be recorded as a transaction (I), or not recorded...
Following are a list of source documents and a list of transactions. Indicate by letter next to each transaction the source document that would serve as evidence for the recording of the transaction....
The Effect of Transactions on the Accounting Equation For each of the following transactions, indicate whether it increases (I), decreases (D), or has no effect (NE) on the total dollar amount of...
Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold during the quarter...
Provide documentation of a step by step training plan for a beta fish. What will be the primary reinforcer? How will you cue the behavior? What schedule of reminforcement will you use. What is the...
On May 1, Soriano Company reported the following account balances along with their estimated fair values: Items Carrying Amount Fair Value Receivables Inventory Copyrights Patented technology Total...

On July 1, 2017, Jo's Flower Shop borrowed $25,000 from the bank. Jo's signed a ten-month, 8%

Question:

Step by Step Answer:

1 The effect of the loan on July 1 2017 can be identified and analyzed as follo...View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

Students also viewed these Accounting questions