3.on June 50,Di María's Company sold a car to De Paul's Company on June 30,2022. De Paul's Company signs1a $800,000, 4%, 9-month note. What entry will Di María's Company make on March 30,2023?A Cash824,000B CashNotes ReceivableInterest Revenue•C CashD CashNotes ReceivableNotes ReceivableNotes ReceivableInterest ReceivableInterest Revenue824,000800,00024,000824,000800,000800,000824,000800,00016,0008,000

(1) Debit what comes in, Credit what goes out.(2) Debit all expenses and losses, Credit all incomes…

Answered: Di María's Company sold a car to De…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 86APSA: Accounting for Notes Receivable Yarnell Electronics sells computer systems to small businesses....

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Accounting for Notes Receivable Yarnell Electronics sells computer systems to small businesses. Yarnell engaged in the following activities involving notes receivable: a. On September 1, 2019, Yarnell sold a $10,000 system to Ross Company. Ross gave Yarnell a 6-month, 7% note as payment. b. On December 1, 2019, Yarnell sold a $6,000 system to Searfoss Inc. Searfoss gave Yarnell a 9-month, 9% note as payment. c. On March 1, 2020, Ross paid the amount due on its note. d. On September 1, 2020, Searfoss paid the amount due on its note. Required: Prepare the necessary journal and adjusting entries for Yarnell Electronics to record these transactions.
On August 31, 2022, Prestige Co. discounted at a bank a customer's P1,200,000, 9-month, 10% note receivable dated April 30, 2022. the bank discounted the note at 12% on the same date. what amount of cash was received from the discounting? a.1,290,000 b.1,225,500 c.1,320,000 d.1,173,900 What is the gain or loss on note receivable discounting? a.66,100 loss b.Zero c.14,500 gain d.14,500 loss
2. Assume the following information regarding a note received by HEERHUM YU Company: P1,500,000 October 1, 2020 120 days December 1, 2020 Principal amount of note receivable Date of note Term of note Date of discounting Discount rate 12% Interest income for 120 days P50,000 Compute the interest rate charged to customer. How much is the principal amount of the note receivable?
K. Company B on October 1, 2020? What is the carrying value of the note received from 2-2 Notes Receivables The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000 for Notes Receivables broken as follows: Notes receivable from Company A Notes receivable from Company B 3,000,000 1,000,000 Total 4,000,000 Additional information: The notes receivable from Company A is a three-year non- interest bearing note, with face value of P3,000,000. The note was received in exchange for a piece of land sold by BLUE on May 1, 2020. The land was carried in the books at the date of sale at P2,600,000. The difference between the face amount of the note and the carrying value of the land was credited to gain on sale of land. The market interest rate for a note of this type is 10%. The notes receivable from Company B bears interest at 10%. The note was received from sale of goods in the normal course of business. The note is dated October 1, 2020 and matures on…
2. On Oct 1, 20X1 ABC Co. discounted a one year 12% P600,000 note received from a customer on January 1, 20X1 with a bank at 14% on a without recourse basis. How much is the proceeds from note discounting? 576,480 648,480 654,000 672,000
At December 31, 2023, Blanco Company had the following balances in the accounts it maintains at Manila Bank: Checking account # 101 Checking account # 201 Time deposit account - 30 days 90-day treasury bill, due Mar. 1, 2024 Travel fund Cash in sinking fund 180-day treasury bill due Apr. 1, 2024 P2,000,000 (200,000) 350,000 400,000 125,000 500,000 875,000 Blanco Company classifies investments with original maturities of three months or less as cash equivalents. In its December 31, 2023 statement of financial position, what amount should Blanco Company report as cash and cash equivalents?
repure u Mr. Jimin received his August 2020 bank statement. The ending cash balance in his accounting books is P300,000 while the cash balance shown on the bank statement is P430,000. He determined the following reconciling items. a. Credit Memo (A/R) b. Debit Memo (A/P) c. Deposits in transit d. Outstanding Checks P190,000 30,000 50,000 20,000 JIMIN CO. Bank Reconciliation Statement August 31, 2020 Adjusting Entries
Entries for Discounted Note Payable A business issued a 60-day note for $60,000 to a bank. The note was discounted at 8%. Assume a 360-day year. a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank. Cash ✔ 0✔ Interest Expense✔ Notes Payable ✔ Feedback 0 0 0 600,000 X Check My Work a. Why is the company issuing the note? What type of note is being issi (interest-bearing or discounted)? Hot much will the company owe on the maturity date? b. Journalize the entry to record the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Notes Payable ✓✔ 0 ✓ Cash
I. On December 31, 2020, what is the carrying value of the note received from Company A? 2-2 Notes Receivables The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000 for Notes Receivable broken as follows: Notes receivable from Company A Notes receivable from Company B 3,000,000 1,000,000 4,000,000 Total Additional information: The notes receivable from Company A is a three-year non- interest bearing note, with face value of P3,000,000. The note was received in exchange for a piece of land sold by BLUE on May 1, 2020. The land was carried in the books at the date of sale at P2,600,000. The difference between the face amount of the note and the carrying value of the land was credited to gain on sale of land. The market interest rate for a note of this type is 10%. The notes receivable from Company B bears interest at 10%. The note was received from sale of goods in the normal course of business. The note is dated October 1, 2020 and matures…
10. A bank note is discounted at 6% in order to take advantage of the cash discount On an invoice for $8,080.00 plus shipping charge of $42.00. The credit terms Are 2/15, n/45. $_ c. What is the face value of the loan? d. How much did the bank earn on this transaction? $. e. How much was saved? $. %24
1 Find the new balance, assuming that the bank charges 2-% per month on the unpaid balance. 2 Previous New Balance Payment Purchases $592.88 $81.26 A. $575.61 B. $572.61 C. $576.51 O D. $574.41 $50.00
F. What should be the carrying value of the note received from Company A on May 1, 2020 2-2 Notes Receivables The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000 for Notes Receivables broken as follows: Notes receivable from Company A Notes receivable from Company B 3,000,000 1,000,000 Total 4,000,000 Additional information: The notes receivable from Company A is a three-year non- interest bearing note, with face value of P3,000,000. The note was received in exchange for a piece of land sold by BLUE on May 1, 2020. The land was carried in the books at the date of sale at P2,600,000. The difference between the face amount of the note and the carrying value of the land was credited to gain on sale of land. The market interest rate for a note of this type is 10%. The notes receivable from Company B bears interest at 10%. The note was received from sale of goods in the normal course of business. The note is dated October 1, 2020 and matures…

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