Solution-Face value discount note to national bank

Face value discount note to national bank

Assignment Help Accounting Basics

Reference no: EM13925325

Ellison Co. issued a $50,000 face value discount note to National Bank on July 1, 2013. The note had a 10 percent discount rate and a one year term to maturity.

Required:

Prepare general journal entries for the following:

a. The issuance of the note on July 1, 2013.

b. The adjustment for accrued interest at the end of the year, December 31, 2013.

c. Recording interest expense for 2014 and repaying the principal on June 30, 2014.

Reference no: EM13925325

Questions Cloud

Calculate the number of shares of stock : Belo Horizonte Company plans to buy back 1.5 million shares of its own stock from its cash reserves at $65 a share. There will be no change in the debt of the company. This will increase the bankruptcy costs by $13 million, due to lower cash reserves..

Components of a social media campaign : From the scenario, prioritize the most significant components of a social media campaign according to the level of influence each could have on the new product launch.

Which of the following should be included in a team charter : which of the following should be included in a Team Charter? Select all that apply 1. Team purpose and Goals 2. Ground Rules for team operation

Accomplish the financial restructuring : Recife Inc. has debt-to-assets ratio of 35%, tax rate of 40%, and total value of $200 million. William J. Recife, the CFO, would like to increase the leverage ratio to 39%, and he believes that there will be no change in the bankruptcy cost of the co..

Face value discount note to national bank : Recording interest expense for 2014 and repaying the principal on June 30, 2014.

What evidence do you have to support your decision : Do you still believe the tools that you selected will work best for a global strategy - Why or why not? What evidence do you have to support your decision?

Diplomatic efforts during the president time in office : Summarize a situation that required U.S. diplomatic efforts during the president's time in office. Explicate the diplomatic doctrine the president followed, with reference to specific actions or events that occurred. Describe the effects of these dip..

Describe the importance of the innovation : Format your paper consistent with APA guidelines

Research suggests that strategic management : Strategic management is that set of managerial decisions and actions that determine the long-run performance of a corporation. Which one of the following is NOT one of the basic elements of the strategic management process?

User Account

All Pages

Face value discount note to national bank

Reference no: EM13925325

Reference no: EM13925325

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT