Prepare adjusting entries needed for the accrual of interest

Assignment Help Financial Accounting
Reference no: EM132499490

Inc. entered into the following transactions relating to notes payable:

Sept. 1 Purchased inventory costing $48,000 by signing an 8-month, 6% note payable.

Nov. 1 Purchased inventory costing $30,000 by signing a 1-year, 7% note payable.

Required:

Question 1: Using the following general journal, prepare journal entries to record the above transactions.

Question 2: Assuming Inc. has a December 31 year end, prepare a adjusting entries needed for the accrual of interest. For ease of computation assume that Inc. calculates interest expense based on the number of months, outstanding, rather than the number of days.

Reference no: EM132499490

Questions Cloud

What apr did the company pay : If you consider the $35 late fee a charge for the month of interest on the $575, what APR did the company pay because of Fred's mistake?
Define the dramatic elements that you encountered in play : Now that you have read the play, you will outline the dramatic elements that you encountered in this play: plot, characters, theme, dialogue.
Indicate to which account bliesmer would debit each of cost : Indicate to which account Bliesmer would debit each of the costs. Painting of and lettering on truck immediately upon purchase 700
What is the name for an infinite stream of constant payments : 1. What is the name for an infinite stream of constant payments occurring at regular time intervals?
Prepare adjusting entries needed for the accrual of interest : For ease of computation assume that Inc. calculates interest expense based on the number of months, outstanding, rather than the number of days.
Effective ways to reduce bullying in schools : Effective Ways to Reduce Bullying in Schools For this Assignment, you will prepare an outline for your Unit 9 Assignment similar to the sample outlines
Write a reflective review of the production : After watching the recording of The Complete Works of William Shakespeare (Abridged) write a reflective review of the production. Your review should include.
What should be the total value of the two items of inventory : What should be the total value of these two items of inventory in the statement of financial position? Neshila Ltd has only 2 items of inventory at reporting
CSCI468 Advanced Network Security Assignment : CSCI468 Advanced Network Security Assignment help and solution, University of Wollongong - assessment writing service - Perform a security analysis

Reviews

Write a Review

Financial Accounting Questions & Answers

  Multiple choice questions on budgetary control system1 the

multiple choice questions on budgetary control system.1. the cash budget is usually prepared before the production

  Prepare the companys statement of cash flows

Prepare the companys statement of cash flows for the year ended December 31, 20X1. Use the indirect method of determining net cash flows from operating activities.

  Why yield curves have most often been upward sloping

Use the liquidity premium to give an explanation for why yield curves have most often been upward sloping over the past 50 years.

  Prepare shareholders equity section of marbles balance sheet

On October 1, 2006, Marble Company had 400,000 shares of $2 par common stock issued and outstanding. Prepare the shareholders' equity section of Marble's balance sheet at September 30, 2007.

  Comprehensive budget plan linking all the individual budgets

The comprehensive budget plan linking all the individual budgets     related to sales, cost of goods sold, operating expenses, projects,            capital expenditures and cash is known as the:

  Conduct a financial analysis of both companies

Conduct a financial analysis of both companies and you should evaluate these entities' profitability, liquidity, financial stability and attractiveness as an investment.

  Perform all of the design services of the corporation

Margaret Brown and Joel Lee each own 50% of Designs Inc. with no other class of stock authorized. On June 6, 2009, they formed to provide design services.

  Bullreview financial statements for two years bullmake a

bullreview financial statements for two years. bullmake a comparison of the following items and note

  Shares of common stock

The interest rate of convertible bonds is 9%. For each $1,000 unit convertible bond, it is convertible into 30 shares of common stock.

  Adopted international financial reporting standards

On January 31, 2011, we elected to change our costing method for the material component of raw materials, work in process, and finished goods inventory to the lower of cost or market using the first-in first-out (“FIFO”) method, from the lower of cos..

  The lower-of-cost-or-market rule can be applied to

The lower-of-cost-or-market rule can be applied to

  Statement of cash flows in making informed decisions

Prepare a statement of cash flows for year ended December 31, 2014. Use the indirect method for cash flows from operating activities and how can users of financial statements utilize statement of cash flows in making informed decisions?

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!

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