On November 1, 2019, Edwin Inc. borrowed cash and signed a $60,000, 1-year note payable. Required: 1.
Question:
On November 1, 2019, Edwin Inc. borrowed cash and signed a $60,000, 1-year note payable.
Required:
1. Compute the following items assuming (a) an interest-bearing note at 12%, (b) a non-interest-bearing note discounted at 12%:
a. Cash received
b. Effective interest rate
c. Interest expense for 2019
2. Prepare the journal entries for Edwin under each case for 2019 and 2020.
3. Next Level Why is the effective rate higher for the non-interest-bearing note?
Step by Step Answer:
1 a Cash received 1 Interestbearing 60000 2 Noninterestbearing 60000 088 52800 b Effective interest ...View the full answer
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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 Business questions
-
On September 1, 2019, a company borrowed cash and signed a 1-year, interest-bearing note on which both the principal and interest are payable on September 1, 2021. How will the note payable and the...
-
(Multiple Choice) 1. Which of the following is classified as an accrued payroll liability? Federal Income Employees Share Tax Withheld of F.I.C.A. Taxes a. No ............Yes b. No ............ No c....
-
Jennifer's Landscaping Services signed a $400-per-month contract on November 1, 2019, to provide plant watering services for Lola Inc.'s office buildings. Jennifer's received 4 months' service fees...
-
Part A What is the value of the bond angles in CC14? Enter the bond angle of the molecule. degrees Submit Hints My Answers Give Up Review Part Part B What is the value of the smallest bond angle in...
-
Incandescent light bulbs are filled with an inert gas to lengthen the filament life. With the current off (at T = 20.0 C), the gas inside a light bulb has a pressure of 115 kPa. When the bulb is...
-
Let \(B_{t}=\left(b_{t}, \beta_{t}ight), t \geqslant 0\) be a \(\mathrm{BM}^{2}\) and set \(r_{t}:=\left|B_{t}ight|=\sqrt{b_{t}^{2}+\beta_{t}^{2}}\). a) Show that the stochastic integrals...
-
Measures of Location The values of P 50 , Q 2 , and the median are found for the net incomes reported on all individual 1040 tax forms filed last year. What do those values have in common?
-
Relaxing Recliner Chairs completed the following selected transactions: 2013 Jul. 1 Sold merchandise inventory to Great Mart, receiving a $ 45,000, nine-month, 12% note. Ignore cost of goods sold....
-
Suggest different tools and regulations that Central Bank can use for the control of inflation: 1) for M1 2) for M2 3) for M3 4) How these regulation might affect the balances of commercial banks?...
-
Dr. Roger Jones is a successful dentist but he is experiencing recurring financial difficulties. For example, Dr. Jones owns his office building, which he leased to the professional corporation that...
-
Byrd Company had the following transactions during 2019 and 2020: 1. On December 24, 2019, a computer was purchased on account from Computers International for $60,000. Terms of the sale were 2/10,...
-
Adjusto Corporation (which is on a December 31 fiscal year-end) engaged in the following transactions during 2019 and 2020: 2019 Nov. 1 Issued a 120-day, 12% note, face value of $20,000, to Johnson...
-
In Exercise 12, determine whether w is in row(A) using the method described in the Remark following Example 3.41. Data From Exercise 12 -1 w = [1 -3] 3 -3 3 -5 -1 I|
-
If this years Nobel Prize winner in physics gives a free lecture at your school and just eight people attend, you may conclude that _____. a) no one derived any utility from his lecture b) none of...
-
Which statement is true? a) The utility of a plasma TV is greater than the utility of a 2001 Honda Accord. b) A $50 ticket to a Broadway show provides the ticket-holder with more utility than a $100...
-
If food were free in your school cafeteria, you would keep eating until _____. a) your total utility was zero. b) your marginal utility was zero. c) your consumer surplus was zero. d) you were sick.
-
Price gouging will _____. a) raise consumer surplus b) lower consumer surplus c) have no effect on consumer surplus
-
If price were $8, there would be a (shortage or surplus) ______of_________ units of quantity. Price ($) 24 22 20 18 16 14 12 10 8 6 4 0 Figure 3 10 20 30 40 S 50 Quantity 60 70 80 90 100
-
For a good or service to be counted in a given year's gross domestic product (GDP), what four following criteria must be met?
-
Explain how the graph of each function can be obtained from the graph of y = 1/x or y = 1/x 2 . Then graph f and give the (a) Domain (b) Range. Determine the largest open intervals of the domain over...
-
Most large companies are organized as corporations. Furthermore, corporations are often classified as privately held or public corporations, with privately held corporations further distinguished as...
-
Obtain The Coca-Cola Company's 2010 annual report either using the ''Investor Relations'' portion of its website (do a web search for Coca-Cola Obtain The Coca-Cola Company's 2010 annual report...
-
On November 6, 2012, Gunpowder Corp.'s board of directors approved a share option plan for key executives. On January 2, 2013, a specific number of share options were granted. These options were...
-
Create a company blog for PUMA proforma income balance sheets and comment on the process of creating the proforma documents as well as your conclusions on the need for external financing needs with...
-
You will research the following about Bill Gates: Professional career track Management and leadership styles Team building skills Organizational vision and culture Problem-solving and conflict...
-
Discussing how to build a supply base. How to improve the port of LA and Los Angeles to make it more efficient. He said that the port of Singapore is the most effective port.
Study smarter with the SolutionInn App