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 much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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