User Account

All Pages

Adjusting entry for the interest accrual

Assignment Help Accounting Basics
Reference no: EM13882929

1.On June 30, 2013, the Esquire Company sold some merchandise to a customer for $30,000. In payment, Esquire agreed to accept a 6% note requiring the payment of interest and principal on March 31, 2014. The 6% rate is appropriate in this situation.

Required:
1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2013 interest accrual, and the March 31, 2014 collection.
2. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over or understated in 2013 and 2014?

Reference no: EM13882929

Questions Cloud

Determine the amount of cash collected from customers : General Mills reported the following information in its 2011 financial statements ($ in millions):
First urn contains 3 yellow marbles, 4 green, and 2 red. : First urn contains 3 yellow marbles, 4 green, and 2 red.  The second urn contains 2 yellow, 3 green, and 4 red. P (choosing first urn) = 1/4 and P (second urn) = 3/4
Prepare a sas data set with 45 rows : If we prepare a data set for exercise #9 of chapter 14 (question 3 of this homework), we can use SAS to answer all the questions in parts a), b), c) and d) of this exercise. The sample size (n) for this exercise was 45 and of these 45 third-graders 4..
Could this consumer continue to stay in his current house : In the absence of any policy intervention, will this consumer consume more or less in non-housing consumption given the current crisis?
Adjusting entry for the interest accrual : In payment, Esquire agreed to accept a 6% note requiring the payment of interest and principal on March 31, 2014. The 6% rate is appropriate in this situation.
Information for a bank quoting on spot exchange rates : information for a bank quoting on spot exchange rates
How can the field make a significant impact on promoting : A shortcut to this topic is, "Considering positive psychology's aim to enhance human flourishing worldwide, how can the field make a significant impact on promoting healthy environments and institutions?" We want you to think big and dream, using ..
Prepare journal entries to record the sale of merchandise : Payment of $30,000 on March 31, 2014. The 8% rate is appropriate in this situation.
Set of non-wandering points : A point p is a non-wandering point for f, if , for any open interval J containing p, there exists x ε J and n > 0 such that fn (x) ε J. Note that we do not require that p itself return to J. Let Ω(f) denote the set of non-wandering points for f.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How many pounds of direct material were purchased and used

you have recently accepted a position with vitex inc. the manufacturer of a popular consumer product. during your first

  Work out factory overhead absorption rate

Work out factory overhead absorption rate for both normal as well as expected actual capacity.

  Construct a graphic representation of the data using six

to compare commuting times in various locations independent random samples were obtained from the six cities presented

  Problem regarding lease or buy

Lease or buy: I can lease a building for $10,000 or buy for $800,000. The weighted average cost of capital is 12%. Which is cheaper buy or lease?

  Overhead per month when operating at the one shift level is

the breezy boat company manufactures two models of boats nine and twelve foot sail boats and sell the boats through

  The grid corporation owns a bank of boring machines they

the grid corporation owns a bank of boring machines. they regularly replace two machines each year. in the current year

  Prepare journal entries to reflet the transactions in an

general capital assets are accounted for differently in fund governmental-wide financial statements.a city engaged in

  The illinois company manufacturers a product

The Illinois company manufacturers a product that goes through three processing departments.

  Laudermilk produces dairy equipment most of its jobs have a

laudermilk produces dairy equipment. most of its jobs have a number of units per job. the company has two different

  I a full-time equivalent fte is paid for 2080 hours and

assume that a home health agency requires 6000 nursing care hours. if a full-time equivalent fte is paid for 2080 hours

  Principles to the entire production process

Folding Squid Technologies initiated a just-in-time inventory system in 2007. Now the production manager, Chan Ziaou, wants to apply the same principles to the entire production process. His recommendation is the firm adopt a:

  What are john deductions

What are John's deductions for 2010 and 2011 based on the above information if 1) the car was used for personal property and 2) business property?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd