View Policies Show Attempt History Current Attempt in Progress On April 1, 2020, Sheffield Company assigns...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
View Policies Show Attempt History Current Attempt in Progress On April 1, 2020, Sheffield Company assigns $549,200 of its accounts receivable to the Third National Bank as collateral for a $305,600 loan due July 1, 2020. The assignment agreement calls for Sheffield to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). (a) Your answer is correct. Prepare the April 1, 2020, journal entry for Sheffield Company. Of no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not Indent manually) Debit Credit Date Apr. 1, 2020 Account Titles and Explanation Cash Interest Expense Notes Payable eTextbook and Media 289124 16476 305600 (b) Prepare the journal entry for Sheffield's collection of $362,200 of the accounts receivable during the period from April 1, 2020, through June 30, 2020. (If no entry is required, select "No Entry" for the account tities and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 4 used Submit Answer (c) The parts of this question must be completed in order. This part will be available when you complete the part above. View Policies Show Attempt History Current Attempt in Progress On April 1, 2020, Sheffield Company assigns $549,200 of its accounts receivable to the Third National Bank as collateral for a $305,600 loan due July 1, 2020. The assignment agreement calls for Sheffield to continue to collect the receivables. Third National Bank assesses a finance charge of 3% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type). (a) Your answer is correct. Prepare the April 1, 2020, journal entry for Sheffield Company. Of no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not Indent manually) Debit Credit Date Apr. 1, 2020 Account Titles and Explanation Cash Interest Expense Notes Payable eTextbook and Media 289124 16476 305600 (b) Prepare the journal entry for Sheffield's collection of $362,200 of the accounts receivable during the period from April 1, 2020, through June 30, 2020. (If no entry is required, select "No Entry" for the account tities and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 4 used Submit Answer (c) The parts of this question must be completed in order. This part will be available when you complete the part above.
Expert Answer:
Answer rating: 100% (QA)
Sheffield Company Journal Enteries Trans Particulars ... View the full answer
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Posted Date:
Students also viewed these finance questions
-
A firm sells $100,000 of its accounts receivable to factors at a 2 percent discount. The firms average collection period is one month. What is the dollar cost of the factoring service?
-
Q2 Consider the following demand function, p= 1-Q/2, Q = 91 +92, where qi denotes firm i's output, i=1,2. Assume that the marginal cost of each firm is equal to c> 0. Firms choose quantities...
-
On June 4, Maltex sold $108,000 of its accounts receivable to a collection agency, which charges a 2.5% factoring fee. Record the entry on June 4.
-
Dun and Bradstreet have reported that nearly half of all Australian businesses operated with a negative cash flow over recent financial years. This figure is worrying as 80% of business failures are...
-
The Human Resource Department at Neumann University would like to examine the linear relationship between a faculty members performance rating (measured on a scale of 1 20) and his or her annual...
-
The macromolecules made from folded chains of amino acids are (a) proteins. (b) carbohydrates. (c) lipids. (d) nucleic acids.
-
Visit a Web site for currencies and make a list of currencies and rates of exchange with your own home currency.
-
Whitaker Consulting Company has prepared a trial balance on the following partially completed worksheet for the year ended December 31, 2016: Additional information: (a) On January 1, 2016, the...
-
Hugh Curtin borrowed $37,000 on July 1, 2022. This amount plus accrued interest at 8% compounded annually is to be repaid on July 1, 2027. How much will Hugh have to repay on July 1, 2027? Amount to...
-
Can you explain how to solve the portfolio variance of Portfolio Healthcare Fund/Inverse ETF and Portfolio Healthcare Fund/Biotech Fund? I have been able to solve everything prior to this, including...
-
Fred currently earns $9,000 per month. Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His employer is willing to pay Fred $10,000 per month if he...
-
If we're looking at the F node, why is -3 being carried up the tree? If we're at the F node (Max's turn) then we should be evaluating whether -5 or -3 is greater than alpha, but neither are, so why...
-
What are some examples of cost synergies a retailer might be able to get via an acquisition? Suppose, Dollar General has now been listed as a public company. Dollar General decides to buy a small...
-
You have been offered the opportunity to purchase this restaurant for $180,000. The restaurant has been showing steady net income growth of 5% annually for the last several years and you assume this...
-
In their study of the effect of early colonial settlement on growth, Acemoglu- Johnson-Robinson are careful to rule out reverse causality. In this context reverse causality would mean that: O a....
-
If interest rates rise 5% and if you own a bond with a maturity of 10years and a duration of 5with a 5% yield your bond price will change by approximately what percentage amount? A- up 5% b- down 5%...
-
Check Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as showm by its June contribution format income statement below: Sales...
-
Nike manufactures shoes and sportswear. How has the Internet changed the way this company communicates with its suppliers and retail customers?
-
What is treasury stock?
-
Maltese Falcone, Inc., has not checked its weighted average cost of capital for four years. Firm management claims that since Maltese has not had to raise capital for new projects in four years, they...
-
Suppose that the standard deviation of the returns on the shares of stock at two different companies is exactly the same. Does this mean that the required rate of return will be the same for these...
-
Bolivia currently has a nominal 1-year risk-free interest rate of 40 percent, which is primarily due to the high level of expected inflation. The U.S. nominal 1-year risk-free interest rate is 8...
-
Effect of September 11 on Forward Rate Forecasts. The September 11, 2001, terrorist attack on the United States was quickly followed by lower interest rates in the United States. How would this...
-
Assume that interest rate parity exists and it will continue to exist in the future. Assume that interest rates of the United States and the United Kingdom vary substantially in many periods. You...
Study smarter with the SolutionInn App