Reference no: EM13844430
I was wondering if you'd be able to help me with a Interest-Bearing Note problem. I'm in an undergraduate intermediate accounting course and some of the questions on my homework are confusing me. Here's a problem I need help with - Prepare the journal entries for Bean Company for October 1, 2015, December 31, 2015 (the company's year-end), October 1, 2016, and December 31, 2016
The Bean Company makes a Sale with an invoice price of $109,000. This sale occurs on October 1, 2015. As payment, The Bean Company accepts a note of $109,000. The note is due on October 1, 2017. The interest rate stated on the note is 2%. The market rate of interest for similar risk notes is 8%. Assume annual interest (annual compounding).
This is what I have so far:
10/01/15 Dr. Notes Receivable 109,000
Cr. Sales Revenue 97,338
Cr. Discounts on Notes Receivable 11,662
12/31/15 Dr. Interest Receivable 545
Dr. Discounts on Notes Receivable 1,402
Cr. Interest Revenue 1947
I have made the schedule of note discount amortization, but I don't know what to put down for the rest of the journal entries.
|
Generating and refining topics
: This assignment should be helpful in generating and refining topics for your upcoming Narrative essay (look ahead to the Narrative Essay writing criteria). This practice also may be helpful in future writing projects.
|
|
Partnership of brandon and ryan is being liquidated
: After several years of business, Abel, Barney, and Cole are liquidating. The following are post-closing account balances. Cash 18,000 Inventory 73,000 Other assets 157,000 Accounts Payable 61,000 Abel, Capital 50,000 Barney, Capital 50,000 Cole, Ca..
|
|
Reconstruct the arguments in given passages
: General Instructions: Reconstruct the arguments contained in the passages below, following the argument reconstruction rules on pg. 65 of your textbook. This assignment is modeled after Practice Problems Set 1-12. You may work in groups on this as..
|
|
Various ways of exception handling
: Various ways of exception handling
|
|
The market rate of interest for risk
: The Bean Company makes a Sale with an invoice price of $109,000. This sale occurs on October 1, 2015. As payment, The Bean Company accepts a note of $109,000. The note is due on October 1, 2017.
|
|
Find the impulse response for the difference equation
: Find the impulse response, h[n], for the difference equation - Determine the impulse response by first finding the unit step response, ys(t), for the following system
|
|
How do the properties derived classes differ
: How do the properties derived classes differ
|
|
Determine the per unit model for problem
: What real, reactive, and apparent power does the generator supply when the switch is closed - What real, reactive, and apparent power does the generator supply when the switch is open? Solve in per units and convert to real watts, VARS and VAs
|
|
Prepare a statement of cash flows
: Sold equipment for $2,000. The original cost of the equipment was $133,000 and the related balance in the accumulated depreciation account totaled $119,000.
|