Question: On May 16, 2016, Reliable Company received a 90-day, 8 percent, $9,800 interest-bearing note from White Company in settlement of White's past-due account. On June

On May 16, 2016, Reliable Company received a 90-day, 8 percent, $9,800 interest-bearing note from White Company in settlement of White's past-due account. On June 30, Reliable discounted this note at Fargo Bank and Trust. The bank charged a discount rate of 13 percent. On August 15, Reliable received a notice that White had paid the note and the interest on the due date. Give entries in general journal form to record these transactions.

Analyze:

If the company prepared a balance sheet on July 31, 2016, how should Notes Receivable-Discounted be presented on the statement?

Step by Step Solution

★★★★★

3.41 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

GENERAL JOURNAL PAGE DATE DESCRIPTION POST REF DEBI... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1128-B-A-C-A-R(4533).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

On August 25, Intercontinental Company received a 90-day, 9 percent note in settlement of an account receivable in the amount of $20,000. Determine the maturity date, amount of interest on the note,...

On August 25, Champion Company received a 90-day, 9 percent note in settlement of an account receivable in the amount of $20,000. Determine the maturity date, amount of interest on the note, and...

On May 10, Morris Company received a 90-day, 6.5 percent note for $ 7,500, dated May 10, for merchandise sold to Baar Company. Morris Company endorsed the note in favor of its bank on May 28. The...

On May 16, 2016, Reliable Company received a 90-day, 8 percent, $6,600 interest-bearing note from White Company in settlement of White's past-due account. On June 30, Reliable discounted this note at...

On May 16, 20X1, Safeway Company received a 90-day, 8 percent, $9,000 interest-bearing note from Black Company in settlement of Black's past-due account. On June 30, Safeway discounted this note at...

On May 16, 2019, Safeway Company received a 90-day, 8 percent, $8,600 interest-bearing note from Black Company in settlement of Black's past-due account. On June 30, Safeway discounted this note at...

On May 16, 2019, Safeway Company received a 90-day, 8 percent, $10,500 interest-bearing note from Black Company in settlement of Blacks past-due account. On June 30, Safeway discounted this note at...

On May 16, 2019, Safeway Company received a 90-day, 8 percent, $7,800 interest-bearing note from Black Company in settlement of Black's past-due account. On June 30, Safeway discounted this note at...

On May 16, 20X1, Safeway Company received a 90-day, 8 percent, $7,400 interest-bearing note from Black Company in settlement of Black's past-due account. On June 30, Safeway discounted this note at...

In 2010, EZ-Learn Software developed a software package for assisting calculus instruction in business colleges, at a cost of $2,000,000. Although there are tens of thousands of calculus students in...

Based on what youve heard in the interview take this opportunity to supplement the software by designing some onscreen feedback for Owen and his sales team The feedback should address all of Owens...

Suppose a filling machine is used to fill cartons with a liquid product. The specification that is strictly enforced for the filling machine is 9 1.5 oz. If any carton is produced with weight...

How are our J.E.D.I. commitments reflected in our community outreach? a. How do we define our community? b. What are the demographics of the communities in which we operate? c. How do we engage our...

The current assets and current liabilities of JAE Company on December 31, 2019 and 2018, are as follows. The corporations net income for 2019 was $50,000. Included in its expenses was depreciation of...

The income statement of Windbrook, Inc., showed net income of $70,000 for 2019. The firms beginning inventory was $49,000 and its ending inventory was $54,000. Accounts payable were $44,000 on...

The following information is taken from the income statement of Pittsburg Inc. for 2019: Additional information relating to account balances at the beginning and end of the year appears below:...

The desire to maximize profits can work against racial and other types of discrimination. To see this, consider two equally productive accountants named Ted and Jared. Ted is black, and Jared is...

please answer all parts May Corporation Holdings is considering two mutually exclusive projects. The company intends to invest in either one of the projects. May Corporation Holdings' required rate...

The Woods Company and the Koepka Company have both announced IPOs at $46 per share. One of these is undervalued by $12.00, and the other is overvalued by $5.75, but you have no way of knowing which...