In 2010, Bill is unable to pay his car loan. The bank repossesses the car and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In 2010, Bill is unable to pay his car loan. The bank repossesses the car and sells it for $4,000, leaving a deficiency balance of $2,000. In 2020, Bill has been working regularly and trying to rebuild his credit. He has accumulated $2,000 in cash and he brings it to the bank to pay the deficiency. What entry does the bank make to record this activity? In 2010, Bill is unable to pay his car loan. The bank repossesses the car and sells it for $4,000, leaving a deficiency balance of $2,000. In 2020, Bill has been working regularly and trying to rebuild his credit. He has accumulated $2,000 in cash and he brings it to the bank to pay the deficiency. What entry does the bank make to record this activity?
Expert Answer:
Answer rating: 100% (QA)
The bank would make the following journal entry to record the payment of the deficien... View the full answer
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
Students also viewed these accounting questions
-
What entry does Pharoah Company make at the maturity date, assuming Gates pays the note and interest in full at that time? (Credit account titles are automatically indented when amount is entered. Do...
-
When a partner is unable to pay a capital deficiency: The remaining partners must wait for the deficiency to be paid before cash is distributed. The partner must take out a loan to cover the...
-
When a legal entity is unable to pay its debts, bankruptcy law provides various options for the entity or individual to resolve those debts. Bankruptcy remedies are available to individuals,...
-
1. What is the present value (PV") of an offer of $15,000 two years from now if the Opportunity Cost of Capital (OCC) is $12% per annum? 2. What is the PV of an offer to receive $12,000 three years...
-
Coca-Cola and PepsiCo both produce and market beverages that are direct competitors. Key financial figures (in $ millions) for these businesses over the past year follow. Required 1. Compute return...
-
A two-layer wall is made of two metal plates, with surface roughness of about 25 mm, pressed together at an average pressure of 10 MPa. The first layer is a stainless steel plate with a thickness of...
-
Describe the advantages and disadvantages of electronic medical records.
-
An isolated spherical capacitor has charge + Q on its inner conductor (radius ra and charge -Q on its outer conductor (radius rb) Half of the volume between the two conductors is then filled with a...
-
What might be one cost and one benefit of Keynesian economic policies?
-
The bookkeeper has prepared a preliminary trial balance of Suzzy and Daryl for the year ended 31 December as follows. GH Capital account Profit and loss account at 1 January Bank loan Debtors and...
-
Simon sold goods to Lawrence for $2200 including GST. Lawrence paid his account within the discount period and received a settlement discount of 2%. Assume GST of 10%. Using the gross method, the...
-
How a manager at Huawei could use Transactional and Transformational leadership to motivate workers. Transactional leadership and Transformational leadership
-
Describle the elements of transactional leadership?
-
Prepare a partial income statement, beginning with income before income taxes using the following information for Kingbird Corporation for the fiscal year ended December 31, 2020: Sales $745,000...
-
How would you describe Jack Hartnett's leadership style? Why is he successful? Would you work for him?
-
a. Create an aged accounts receivable according to your senior's instructions. Assume there are no receivables still outstanding prior to January 1, 2020. Note that the data set includes all orders...
-
You expect to receive $100 in one year, $300 in two years, and $500 in 4 years. If you invest the cash flows into an account that earns 5% interest, how much money will you have in the account in 5...
-
Walker, Inc., is an all-equity firm. The cost of the company's equity is currently 11.4 percent and the risk-free.rate is 3.3 percent. The company is currently considering a project that will cost...
-
Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage, assuming that the residual value of the fixed asset is to be ignored: (a) 2 years,...
-
On August 1, 2010, Cheryl Newsome established Titus Realty, which completed the following transactions during the month: a. Cheryl Newsome transferred cash from a personal bank account to an account...
-
In the long run, the normal selling price must be set high enough to cover what factors?
-
The primary problem with the hypothesis that life on Earth originated on Mars is that (a) Mars has never had water. (b) the proposed Martian fossils are much smaller than the tiniest bacteria on...
-
Which of these statements regarding the origin of life is false? (a) Life originated on an Earth whose atmosphere contained high levels of oxygen. (b)Miller and Urey obtained amino acids and other...
-
Which of the following mechanisms of evolution consistently causes populations to become more adapted to their environments? (a) natural selection (b)mutation pressure (c) genetic drift (d) gene flow
Study smarter with the SolutionInn App