CH 9 QUESTION A

A)On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. What is the adjusting entry for the accrued interest at December 31 on the note?

A1)Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $8,000 of cash sales that are subject to an 8% sales tax, what is the journal entry to record the cash sales?

A2)On April 12, Hong Company agrees to accept a 60-day, 10%, $4,500 note from Indigo Company to extend the due date on an overdue account. What is the journal entry needed to record the payment of the note by Indigo Company on the maturity date?

A3)Define liabilities and explain the difference between current and long-term liabilities.

A4)On November 1, Casey's Snowboards signed a $12,000, 90-day, 5% note payable to cover a past due account payable (answer the following 4 questions related to this information).

A5)What amount of interest expense on this note should Casey's Snowboards report on year-end December 31?

A6)Prepare Casey's journal entry to record the issuance of the note payable.

A7)Prepare Casey's adjusting journal entry at the end of the year.

A8)Prepare Casey's journal entry to record the payment of the note on February 1 of the following year.

Please answer completely... Thank you