At December 31 of Year 1, Portland Corporation had two notes payable outstanding (notes 1 and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
At December 31 of Year 1, Portland Corporation had two notes payable outstanding (notes 1 and 2). At December 31 of Year 2, Portland also had two notes payable outstanding (notes 3 and 4). These notes are described below. December 31, Year 1 Note 1 Note 2 December 31, Year 2 Note 3 Note 4 Required Date of note Principal Amount Interest Rate Number of Days November 25, Year 1 December 16, Year 1 December 11, Year 2 December 07, Year 2 $27,000 16,800 15,400 18,000 8% 9% 9% 10% 90 60 120 90 a. Prepare the adjusting entries for interest at December 31 of Year 1. b. Assume that the adjusting entries were made at December 31 of Year 1, and that no adjusting entries were made during Year 2. Prepare the Year 2 journal entries to record payment of the notes that were outstanding at December 31 of Year 1. c. Prepare the adjusting entries for interest at December 31 of Year 2. Round answers to nearest dollar. Use 360 days for interest calculations when applicable. At December 31 of Year 1, Portland Corporation had two notes payable outstanding (notes 1 and 2). At December 31 of Year 2, Portland also had two notes payable outstanding (notes 3 and 4). These notes are described below. December 31, Year 1 Note 1 Note 2 December 31, Year 2 Note 3 Note 4 Required Date of note Principal Amount Interest Rate Number of Days November 25, Year 1 December 16, Year 1 December 11, Year 2 December 07, Year 2 $27,000 16,800 15,400 18,000 8% 9% 9% 10% 90 60 120 90 a. Prepare the adjusting entries for interest at December 31 of Year 1. b. Assume that the adjusting entries were made at December 31 of Year 1, and that no adjusting entries were made during Year 2. Prepare the Year 2 journal entries to record payment of the notes that were outstanding at December 31 of Year 1. c. Prepare the adjusting entries for interest at December 31 of Year 2. Round answers to nearest dollar. Use 360 days for interest calculations when applicable.
Expert Answer:
Answer rating: 100% (QA)
a For each note outstanding at December 31 Year 1 we need to calculate and record the interest expen... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The bank portion of the bank reconciliation for Langer Company at November 30, 2017, was as follows The adjusted cash balance per bank agreed with the cash balance per books at November 30. The...
-
An unknown compound A of molecular formula of C10H180 reacts with H2S04 and heat to form two compounds (B and C) of molecular formula C10H16. B and C both react with H2 over Pd/C to form decalin....
-
Making use of the solution of the foregoing problem, determine the probability of the particle with energy E = Uo/2 to be located in the region x > l, if l2Uo = (3/4) 2 h2/m.
-
Crime-related and demographic statistics for 47 US states in 1960 were collected from government agencies, including the FBI's Uniform Crime Report. One analysis of this data found a strong...
-
Statistical Research Service, Inc. (SRSI) ended 2008 with retained earnings of \(\$ 75,000\). During 2009 SRSI earned net income of \(\$ 90,000\) and declared dividends of \(\$ 30,000\). Also during...
-
J. K. Pratt Co. had the following transactions: 20-1 July 20 Received a $750, 30-day, 10% note from J. Akita in payment for sale of merchandise. Aug. 19 J. Akita paid note issued July 20 plus...
-
1.If you want to restore or recover a damaged or lost data and to bring it to its new location:- a)Go to the View menu in the title bar - open or restore company - restore backup copy b)Go to the...
-
At the beginning of 2008, Bellamy Seafood acquired equipment costing $60,000. It was estimated that this equipment would have a useful life of six years and a residual value of $6,000 at that time....
-
Suppose you are managing the inbound lane from one of you major suppliers. you want to set your own inventory policies but first need to determine the expected and standard deviation of demand over...
-
A financial services company requires IT support. After it decides to sign a contract with a local IT company that will provide remote support, it must negotiate contract length. Provide one factor...
-
1.Describe the experimental design of the study described in "Randomizing Religion: The impact of protestant evangelism on economic outcomes" 2.What are the main outcomes measured in this study?...
-
The change in the business cycles can impact how the economy is operating. Explain how an increase in the unemployment rate would impact how businesses will operate. Analyze how economic growth can...
-
Explain cybersecurity in your own words and discuss system vulnerabilities that pose threats. Provide 2 examples of cybersecurity measures that your organization takes and evaluate their...
-
In risk management how does Business Continuity Management affects the outcome of threats/events that occur? explain.
-
Tom Harris and Jake Carson had been sports and political leaders and rivals ever since high school. Throughout high school, they competed at the same level vigorously and routinely came out in 1st or...
-
Chao, Louis, and Mari, unrelated individuals, own all of the shares of Cerise Corporation. All three shareholders have been active in the management of Cerise since its inception. In the current...
-
Problem 10.16, we projected financial statements for Wal-Mart for Years + 1 through +5. The following data include the actual amounts for Year 4 and the projected amounts for Year +1 to Year +5 for...
-
Example 9 in the chapter discusses JDS Uniphase's record-breaking asset impairment charge of approximately $50 billion for Year 1. Explain how the charge of this record-breaking magnitude was...
-
Identify the types of firm-specific factors that increase a firm's non diversifiable risk (systematic risk). Identify the types of firm-specific factors that increase a firm's diversifiable risk...
-
True or False. The Euler-Bernoulli beam theory is more accurate than the Timoshenko theory.
-
Find the free-vibration solution of a cord fixed at both ends when its initial conditions are given by \[w(x, 0)=0, \quad \frac{\partial w}{\partial t}(x, 0)=\frac{2 a x}{l} \quad \text { for } \quad...
-
What is the main difference in the nature of the frequency equations of a discrete system and a continuous system?
Study smarter with the SolutionInn App