Helen Parish started a design company on January 1, 2016. On April 1, 2016, Parish borrowed cash from a local bank by issuing a one-year $120,000 face value note with annual interest based on an 8 percent discount. During 2016, Parish provided services for $72,000 cash.
Required Answer the following questions. Record the events in T-accounts prior to answering the questions. (Select "1, 2, or 3" for the transactions in the order they take place.)
Cash Notes Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Service Revenue Discount on Notes Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Interest Expense Beg. Bal. End. Bal.
| Helen Parish started a design company on January 1, 2016. On April 1, 2016, Parish borrowed cash from a local bank by issuing a one-year $120,000 face value note with annual interest based on an 8 percent discount. During 2016, Parish provided services for $72,000 cash. |
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| Answer the following questions. Record the events in T-accounts prior to answering the questions. (Select "1, 2, or 3" for the transactions in the order they take place.)
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Related questions
Problem 7-1A Special journals, subsidiary ledgers, trialbalance-perpetual LO C3, P1, P2
[The following information applies to the questionsdisplayed below.]
Church Company completes these transactions and events during Marchof the current year (terms for all its credit sales are 3/10,n/30).
| Mar. | 1 | Purchased $40,000 of merchandisefrom Van Industries, invoice dated March 1, terms 3/15, n/30. | ||||
| 2 | Sold merchandise on credit to MinCho, Invoice No. 854, for $16,000 (cost is $8,000). | |||||
| 3 | (a) | Purchased $1,200 of office supplieson credit from Gabel Company, invoice dated March 3, terms n/10EOM. | ||||
| 3 | (b) | Sold merchandise on credit to LindaWitt, Invoice No. 855, for $8,000 (cost is $4,000). | ||||
| 6 | Borrowed $72,000 cash from FederalBank by signing a long-term note payable. | |||||
| 9 | Purchased $20,000 of officeequipment on credit from Spell Supply, invoice dated March 9, termsn/10 EOM. | |||||
| 10 | Sold merchandise on credit toJovita Albany, Invoice No. 856, for $4,000 (cost is $2,000). | |||||
| 12 | Received payment from Min Cho forthe March 2 sale less the discount. | |||||
| 13 | (a) | Sent Van Industries Check No. 416in payment of the March 1 invoice less the discount. | ||||
| 13 | (b) | Received payment from Linda Wittfor the March 3 sale less the discount. | ||||
| 14 | Purchased $34,000 of merchandisefrom the CD Company, invoice dated March 13, terms 3/10, n/30. | |||||
| 15 | (a) | Issued Check No. 417, payable toPayroll, in payment of sales salaries expense for the first half ofthe month, $15,200. Cashed the check and paid the employees. | ||||
| 15 | (b) | Cash sales for the first half ofthe month are $64,000 (cost is $51,200). (Cash sales are recordeddaily, but are recorded only twice here to reduce repetitiveentries.) | ||||
| 16 | Purchased $1,720 of store supplieson credit from Gabel Company, invoice dated March 16, terms n/10EOM. | |||||
| 17 | Received a $3,400 credit memorandumfrom CD Company for the return of unsatisfactory merchandisepurchased on March 14. | |||||
| 19 | Received a $600 credit memorandumfrom Spell Supply for office equipment received on March 9 andreturned for credit. | |||||
| 20 | Received payment from Jovita Albanyfor the sale of March 10 less the discount. | |||||
| 23 | Issued Check No. 418 to CD Companyin payment of the invoice of March 13 less the March 17 return andthe discount. | |||||
| 27 | Sold merchandise on credit toJovita Albany, Invoice No. 857, for $12,000 (cost is $4,800). | |||||
| 28 | Sold merchandise on credit to LindaWitt, Invoice No. 858, for $4,800 (cost is $1,920). | |||||
| 31 | (a) | Issued Check No. 419, payable toPayroll, in payment of sales salaries expense for the last half ofthe month, $15,200. Cashed the check and paid the employees. | ||||
| 31 | (b) | Cash sales for the last half of themonth are $70,400 (cost is $42,240). | ||||
| 31 | (c) | Verify that amounts impactingcustomer and creditor accounts were posted and that any amountsthat should have been posted as individual amounts to the generalledger accounts were posted. Foot and crossfoot the journals andmake the month-end postings. |
Assume the following ledger account amounts Inventory (March 1 beg.bal. is $63,000), Z. Church, Capital (March 1 beg. bal. is $63,000)and Church Company uses the perpetual inventory system.
Post information from the journals in Part 2 to the generalledger and the accounts receivable and accounts payable subsidiaryledgers.
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NEED ALL 5 PARTS thanks..
Required information
Problem 11-1A Short-term notes payable transactions and entries LO P1
[The following information applies to the questions displayed below.]
Tyrell Co. entered into the following transactions involving short-term liabilities in 2016 and 2017.
2016
| Apr. | 20 | Purchased $35,500 of merchandise on credit from Locust, terms n/30. Tyrell uses the perpetual inventory system. | ||
| May | 19 | Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 7% annual interest along with paying $500 in cash. | ||
| July | 8 | Borrowed $60,000 cash from NBR Bank by signing a 120-day, 10% interest-bearing note with a face value of $60,000. | ||
| __?__ | Paid the amount due on the note to Locust at the maturity date. | |||
| __?__ | Paid the amount due on the note to NBR Bank at the maturity date. | |||
| Nov. | 28 | Borrowed $27,000 cash from Fargo Bank by signing a 60-day, 7% interest-bearing note with a face value of $27,000. | ||
| Dec. | 31 | Recorded an adjusting entry for accrued interest on the note to Fargo Bank. | ||
2017
| __?__ | Paid the amount due on the note to Fargo Bank at the maturity date. |
Problem 11-1A Part 1
Required:
1. Determine the maturity date for each of the three notes described.
Problem 11-1A Part 2
2. Determine the interest due at maturity for each of the three notes. (Do not round your intermediate calculations. Use 360 days a year.)
Problem 11-1A Part 3
3. Determine the interest expense to be recorded in the adjusting entry at the end of 2016. (Do not round your intermediate calculations. Use 360 days a year.)
Problem 11-1A Part 4
4. Determine the interest expense to be recorded in 2017. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Use 360 days a year.)
Problem 11-1A Part 5
5.1 Prepare journal entries for all the preceding transactions and events for 2016. (Do not round your intermediate calculations.)
Exercise 4-1
During 2011 and 2012, Data Resources, Inc. engaged in financial transactions that involved short-term liabilities.
1. Using the financial transaction information provided below, determine the following.
a. All three note maturity dates.
b. The interest due on all three notes on the dates they mature, assuming a 360-day year.
c. The interest expense for the 2011 year-end adjusting entry.
d. For distinguished performance, determine the interest expense for 2012.
Note: The company uses a perpetual inventory system.
2011
| Mar 19 | Purchased $41,250 worth of merchandise from Chipcom, on credit. Terms: 1/10, n/30. | |
| April 29 | Replaced the Mar 19 account payable to Chipcom with a 120-day, $35,000 note at 7% annual interest, plus a cash payment of $6,250. | |
| Jun 16 | Borrowed $55,000 cash from Sunnyvale Bank. Signed a 90-day, 8% interest-bearing note, with a $55,000 face value. | |
| ? | Paid Chipcom the amount due on the note on the date of maturity. | |
| ? | Paid Sunnyvale Bank the amount due on the note on the date of maturity. | |
| Oct 30 | Borrowed $18,000 cash from UCB Bank. Signed a 90-day, 7% interest-bearing note, with a $18,000 face value. | |
| Dec 31 | Recorded an accrued interest adjustment on the UCB Bank note. | |
2012
| ? | Paid UCB Bank the amount due on the note on the date of maturity. |
