Question
On December 31, 2020, Tobita Company had the following balances reported on its balance sheet: a) Prepare all required journal entries related to the notes
On December 31, 2020, Tobita Company had the following balances reported on its balance sheet:
a) Prepare all required journal entries related to the notes receivables during 2021.
b) Prepare any adjusting entries required on December 31, 2021 related to the notes receivables
c) Show the amount and presentation for interest revenue on Tobitas multiple-step income statement for the year ended December 31, 2021.
d) Show how the notes receivable will be reported on Tobitas classified balance sheet on December 31, 2021. There were no estimated uncollectible amounts for the notes receivable.
On December 31, 2020, Tobita Company had the following balances reported on its balance sheet: Notes Receivable Interest Receivable $17,700 $97.00 The following information is available for the notes receivable reported on December 31, 2020. Customer 1 E. Tessier 2 R. Wolde 3 D. Deng Total Note Principal $5,100 5,100 7,500 $17.700 Interest Rate 5.00% 4.00% 6.00% Issue Date Nov. 1, 2020 Nov. 30, 2020 Dec. 1, 2020 Total Term 3 months 5 months 1 year Interest Accrued $42.50 17.00 37.50 $97.00 All notes require that the interest be paid on the maturity date of the note. All amounts owing on the notes were paid on time. Tobita prepares annual adjusting entries on December 31, the company's year end. Additional transactions of 2021: Mar. 1 Received a $14.100. twelve-month, 5.00% note from T. Lalonde in settlement of an accounts receivable. Interest is due at maturity. Oct. 30 Received a $6,900, three-month, 4.00% note from J. Han in settlement of an accounts receivable. Interest is due at maturity. Dec. 1 Provided a $10,000 loan to Morgan Industriesin exchange for a two-year, 6.00% note with interest due at maturity. Interest on the note is payable each year on November 30. Tobita Merchants Balance Sheet (Partial)Step by Step Solution
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