On August 1, Year 1, Company A, an aeronautic electronics company, borrows $19.6 million cash to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On August 1, Year 1, Company A, an aeronautic electronics company, borrows $19.6 million cash to expand operations. The loan is made by Company B under a short-term line of credit arrangement. Company A signs a six-month, 9% promissory note. Interest is payable at maturity. Company A's year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below for Company A. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).) No Date General Journal Debit Credit 1 August 01 Notes Receivable X19,600,000 Cash 19,600,000 December 31 Interest Receivable 735,000 Interest Revenue 735,000 3 January 31 Cash X 20,482,000 X Interest Receivable 735,000 Interest Revenue X, 147,000 Notes Receivable 19,600,000 X *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. On August 1, Year 1, Company A, an aeronautic electronics company, borrows $19.6 million cash to expand operations. The loan is made by Company B under a short-term line of credit arrangement. Company A signs a six-month, 9% promissory note. Interest is payable at maturity. Company A's year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below for Company A. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).) No Date General Journal Debit Credit 1 August 01 Notes Receivable X19,600,000 Cash 19,600,000 December 31 Interest Receivable 735,000 Interest Revenue 735,000 3 January 31 Cash X 20,482,000 X Interest Receivable 735,000 Interest Revenue X, 147,000 Notes Receivable 19,600,000 X *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Expert Answer:
Answer rating: 100% (QA)
No Date General Journal Debit Credit 1 Aug 1 Cash 19600000 Note payable 19600000 2021 To ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
Students also viewed these accounting questions
-
All dollar responses should be entered as whole numbers. Include a minus (-) sign for all negative answers. a. How much would the firms revenue change if it lowered price from $12 to $10? Is demand...
-
On August 1, 2015, Trico Technologies, an aeronautic electronics company, borrows $21 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit...
-
On August 1, 2015, Trico Technologies, an aeronautic electronics company, borrows $21 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit...
-
Mark Cotteleer owns a company that manufactures sailboats, Actual demand for Marks sailboats during each season in 2006 through 2009 was as follows: Mark has forecasted that annual demand for his...
-
Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier decide to save for retirement, which is 35 years away. Theyll both receive an 8 percent annual return...
-
Two couples act on the beam. If the resultant couple is to be zero, determine the magnitudes of P and F, and the distance d between A and B. 60 F 0.2 m A d PA 30 B 1m 300 N 2 m 500 N
-
In what ways can insights from anthropology be useful in understanding and controlling COVID-19 and similar epidemics in the future? In the United States, the effects of COVID-19 exposed racial and...
-
The real rate of interest is currently 3%; the inflation expectation and risk premiums for a number of securities follow. a. Find the risk-free rate of interest, RF, that is applicable to each...
-
Please, draft a risk-shifting clausea representation given by the Seller of business assets about pending or threatened litigation--from two different perspectives: First, taking on the role of the...
-
Hemming Company reported the following current-year purchases and sales for its only product. Date Activities January 11 Beginning inventory. January 10 Sales March 14 March 151 July 30 October 5...
-
There is much disagreement regarding hate speech laws: Supporters maintain they are necessary to promote civility, critics contend they amount to unconstitutional censorship. What do you think?
-
This morning (9 June 2021) siri purchased a j2 =2% p.a. AustralianTreasury bond, maturing on 9 June 2031. Siri is liable for 17% tax oninterest and capital gains. Assume such tax is paid immediately...
-
Assume the following relationships for the Caulder Corp.: Sales/Total assets Return on assets (ROA) Return on equity (ROE) 13.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming...
-
create a variable which equals to Scheduled Surprise, and then run a regression in which Y is Return, the first X variable is Surprise, and the second X variable is Scheduled*Surprise. The results...
-
5.) The cash flow forecast for the city of Typical, KY is provided on the following page. (a.) What information does a cash flow forecast provide? (b.) Based on Typical's cash flow forecast, what...
-
U Co. has a P2, 000,000 credit balance of accumulated profits. The following transactions are taken from U Co. during the year: Net loss, P400,000 Purchase or treasury shares at cost P200,000...
-
JAVA SAMPLE OUTPUT: Welcome to Weasleys' Wizard Wheezes! Can we help the next witch or wizard? (1 = yes, Here is our price list: Pygmy Puffs (each) Extendable Ears (each) Extendable Ears (bag of...
-
Determine two different Hamilton circuits in each of the following graphs. A B F G
-
Below are the external transactions for Shockers Incorporated. 1. Issue common stock in exchange for cash. 2. Purchase equipment by signing a note payable. 3. Provide services to customers on...
-
Halles Berry Farm establishes a $400 petty cash fund on September 4 to pay for minor cash expenditures. The fund is replenished at the end of each month. At the end of September, the fund contains...
-
How is the average collection period of receivables measured? What does this ratio indicate? Is a higher or lower average collection period preferable?
-
There is a flat plate with a base area of 5 kg, sliding along the slant at an angle of 20 with the horizontal plane 60 cm times 40 cm 60 c m times 40 cm. The thickness of the oil layer between the...
-
Assume two periods to expiration, \(u=1.05, d=1 / 1.05, r_{f}=1.02, S_{0}=\$ 100\), no dividends, and \(X=\$ 100\) on a European put expiring at the end of the second period. a. Find: \(P_{u w}, P_{u...
-
Using the put-call parity model, determine the equilibrium price of the put in Question 1, given the equilibrium call value as determined by the binomial model. Comment on the consistency of the...
Study smarter with the SolutionInn App