Reference no: EM133081164

Question - Helen Parish started a design company on January 1, Year 1. On April 1, Year 1, Parish borrowed cash from a local bank by issuing a one-year $58,000 face value note with annual interest based on an 14 percent discount. During Year 1, Parish provided services for $30,500 cash.

Required - Record the events in T-accounts prior to answering the questions.)

-What is the amount of total liabilities on the December 31, Year 1, balance sheet?

-What is the amount of net income on the Year 1 income statement?

-What is the amount of cash flow from operating activities on the Year 1 statement of cash flows?

-Provide the general journal entries necessary to record issuing the note on April 1, Year 1; recognizing accrued interest on December 31, Year 1; and repaying the loan on March 31, Year 2.2. Harden Company issued a $48,300 face value discount note to National Bank on July 1, Year 1. The note had a 5.00 percent discount rate and a one-year term to maturity.

Required - Prepare general journal entries for the following transactions: (Round your final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

-The issuance of the note on July 1, Year 1.

-The adjustment for accrued interest at the end of the year, December 31, Year 1.

-Recording interest expense for Year 2 and repaying the principal on June 30, Year 2.