Hall Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year....
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Hall Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $47,250 of merchandise on credit from Collins, terms n/30. May 19 Replaced the April 20 account payable to Collins with a 90-day, 12%, $37,000 note payable along with paying $10,250 in cash. July 8 Borrowed $87,000 cash from NBR Bank by signing a 120-day, 6%, $87,eee note payable. August 17 Paid the amount due on the note to Collins at the maturity date. November 5 Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $45,000 cash from Rochester Bank by signing a 60-day, 8%, $45,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank. Year 2 January 27 Paid the amount due on the note to Rochester Bank at the maturity date. Requirement General Journal General Ledger Trial Balance. Schedule of Calculation of Payables Interest Year 2 payment Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. View transaction list Journal entry worksheet < 4 5 6 7 August 17. Paid the amount due on the note to Collins at the maturity date. Note: Enter debits before credits. Date Account Title Debit Credit August 17 Notes payable-Collins 37,000 Interest expense Hall Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $47,250 of merchandise on credit from Collins, terms n/30.) May 19 Replaced the April 20 account payable to Collins with a 90-day, 12%, $37,000 note payable along with paying $10,250 in cash. July 8 Borrowed $87,000 cash from NBR Bank by signing a 120-day, 6%, $87,000 note payable. August 17 Paid the amount due on the note to Collins at the maturity date. November 5 Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $45,000 cash from Rochester Bank by signing a 60-day, 8%, $45,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank. Year 2 January 27 Paid the amount due on the note to Rochester Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment Here are the balances in Accounts and Notes payable based on your journal entries: Hall Company Schedule of Accounts Payable Total accounts payable Hall Company Schedule of Notes Payable Notes payable-NBR Bank Total notes payable 0 87,000 $ 87,000 Hall Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $47,250 of merchandise on credit from Collins, terms n/30. May 19 Replaced the April 20 account payable to Collins with a 90-day, 12%, $37,000 note payable along with paying $10,250 cash. July 8 Borrowed $87,000 cash from NBR Bank by signing a 120-day, 6%, $87,000 note payable. August 17 Paid the amount due on the note to Collins at the maturity date. November 5 Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $45,000 cash from Rochester Bank by signing a 60-day, 8%, $45,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank. Year 2 January 27 Paid the amount due on the note to Rochester Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest Year 2 payment Enter the principal amount, interest rate, and number of days of interest to be record expense agrees with your journal entries and the trial balance. Calculation of Interest erify that interest Hall Company Calculation of interest expense August 17-Collins note: Principal Interest rate Number of days' interest to be recorded in Year 1 Hall Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $47,250 of merchandise on credit from Collins, terms n/30. May 19 Replaced the April 20 account payable to Collins with a 90-day, 12%, $37,000 note payable along with paying $10,250 in cash. July 8 Borrowed $87,000 cash from NBR Bank by signing a 120-day, 6%, $87,000 note payable. August 17 Paid the amount due on the note to Collins at the maturity date. November 5 Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $45,000 cash from Rochester Bank by signing a 60-day, 8%, $45,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank. Year 2 January 27 Paid the amount due on the note to Rochester Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest Year 2 payment Prepare the January 27, Year 2 journal entry to record the payment of the Rochester note at maturity. Hall Company does NOT prepare reversing entries. Date 1/27/Year 2 Account title Debit Credit < Calculation of Interest Year 2 payment > Hall Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $47,250 of merchandise on credit from Collins, terms n/30. May 19 Replaced the April 20 account payable to Collins with a 90-day, 12%, $37,000 note payable along with paying $10,250 in cash. July 8 Borrowed $87,000 cash from NBR Bank by signing a 120-day, 6%, $87,eee note payable. August 17 Paid the amount due on the note to Collins at the maturity date. November 5 Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $45,000 cash from Rochester Bank by signing a 60-day, 8%, $45,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank. Year 2 January 27 Paid the amount due on the note to Rochester Bank at the maturity date. Requirement General Journal General Ledger Trial Balance. Schedule of Calculation of Payables Interest Year 2 payment Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. View transaction list Journal entry worksheet < 4 5 6 7 August 17. Paid the amount due on the note to Collins at the maturity date. Note: Enter debits before credits. Date Account Title Debit Credit August 17 Notes payable-Collins 37,000 Interest expense Hall Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $47,250 of merchandise on credit from Collins, terms n/30.) May 19 Replaced the April 20 account payable to Collins with a 90-day, 12%, $37,000 note payable along with paying $10,250 in cash. July 8 Borrowed $87,000 cash from NBR Bank by signing a 120-day, 6%, $87,000 note payable. August 17 Paid the amount due on the note to Collins at the maturity date. November 5 Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $45,000 cash from Rochester Bank by signing a 60-day, 8%, $45,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank. Year 2 January 27 Paid the amount due on the note to Rochester Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment Here are the balances in Accounts and Notes payable based on your journal entries: Hall Company Schedule of Accounts Payable Total accounts payable Hall Company Schedule of Notes Payable Notes payable-NBR Bank Total notes payable 0 87,000 $ 87,000 Hall Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $47,250 of merchandise on credit from Collins, terms n/30. May 19 Replaced the April 20 account payable to Collins with a 90-day, 12%, $37,000 note payable along with paying $10,250 cash. July 8 Borrowed $87,000 cash from NBR Bank by signing a 120-day, 6%, $87,000 note payable. August 17 Paid the amount due on the note to Collins at the maturity date. November 5 Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $45,000 cash from Rochester Bank by signing a 60-day, 8%, $45,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank. Year 2 January 27 Paid the amount due on the note to Rochester Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest Year 2 payment Enter the principal amount, interest rate, and number of days of interest to be record expense agrees with your journal entries and the trial balance. Calculation of Interest erify that interest Hall Company Calculation of interest expense August 17-Collins note: Principal Interest rate Number of days' interest to be recorded in Year 1 Hall Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $47,250 of merchandise on credit from Collins, terms n/30. May 19 Replaced the April 20 account payable to Collins with a 90-day, 12%, $37,000 note payable along with paying $10,250 in cash. July 8 Borrowed $87,000 cash from NBR Bank by signing a 120-day, 6%, $87,000 note payable. August 17 Paid the amount due on the note to Collins at the maturity date. November 5 Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $45,000 cash from Rochester Bank by signing a 60-day, 8%, $45,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Rochester Bank. Year 2 January 27 Paid the amount due on the note to Rochester Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest Year 2 payment Prepare the January 27, Year 2 journal entry to record the payment of the Rochester note at maturity. Hall Company does NOT prepare reversing entries. Date 1/27/Year 2 Account title Debit Credit < Calculation of Interest Year 2 payment >
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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
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