Question
On May 1, 2014, Liam, Inc. assigns $500,000 of its accounts receivable to Lockhart National Bank for a loan of $400,000 with interest on the
On May 1, 2014, Liam, Inc. assigns $500,000 of its accounts receivable to Lockhart National Bank for a loan of $400,000 with interest on the note of 6%.
Provide Liam, Inc.s journal entries as indicated below:
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| Cash | 100000 |
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| Interest expenses | 30000 |
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| Note payable |
| 400000 |
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During July, all of the assigned receivables were collected. The loan is paid off in full on August 1, 2014.
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| Aug. 1 |
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Carney Company determined that its inventory, which had a recorded cost of $80,000, had a market value of only $75,000. Provide one of the two acceptable entries:
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
5th Edition
0912503351, 9780912503356
