Prepare journal entry needed to record the issuance of note

Assignment Help Financial Accounting
Reference no: EM131295139

On September 1, 2015, Ensign Inc. borrowed $21,000 from Emerald City National Bank by issuing a 12-month note. The bank discounted the note at 7.5%.

REQUIRED:

1.   Prepare the journal entry needed to record the issuance of the note.

2.   Prepare the journal entry needed at December 31, 2015, to accrue interest.

3.   Prepare the journal entry to record the payment of the note on September 1, 2016.

4.   What effective rate of interest did Ensign pay?

Reference no: EM131295139

Questions Cloud

Is device 4 absorbing or delivering power : Use power balance to find v4 when v1 = 20 V, i1 = -2 A, p2 = 20 W, p3 = 10 W, i4 = 1 A, and p5 = p6 = 2:5 W. Is device 4 absorbing or delivering power?
Calculate the rate and cost to transport a piece : Using an online rate calculator of your choice, calculate the rate and cost to transport a piece of cargo between two different locations on a major carrier. Provide your data and evaluate your experience using the tool. Be sure to include the Int..
How long will it take you to accumulate the desired amount : Assume that you want to accumulate $20,000 as a down payment on a home. You believe that you can save $2,000 per semiannual period, and your bank will pay interest of 6% per year, or 3% per semiannual period. How long will it take you to accumulate t..
Organizational structure and organizational controls : What is organizational structure and what are organizational controls? What are the differences between strategic controls and financial controls? What is the importance of these differences?
Prepare journal entry needed to record the issuance of note : On September 1, 2015, Ensign Inc. borrowed $21,000 from Emerald City National Bank by issuing a 12-month note. The bank discounted the note at 7.5%. Prepare the journal entry needed to record the issuance of the note. Prepare the journal entry needed..
How organizations can ensure ethical practices : Design processes to manage employee performance, retention, and separation.Analyze laws governing employment and how organizations can ensure ethical practices.Use technology and information resources to research issues in strategic human resource de..
Handling affect the outcome : 1. What was the outcome of the BP oil spill in April 20th 2010 2. How did management handle the crisis? 3. How did the handling affect the outcome?
Use annual compounding for amortization schedule of mortgage : A family currently live in an apartment whose monthly rent is $950. They are thinking of buying a house which would cost $220,000. They plan to live in this house for 5 years and sell it at the end of the 5th year. Note that property taxes are tax de..
Methods of assessing health care organizations : Compare and contrast at least two methods of assessing health care organizations' operational needs and explain how they differ based upon a particular health care setting.

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Differences between the beginning and ending balances

Prepare a financial statement that explain the differences between the beginning and ending balances for the accounts in the Stockholders' Equity category of the balance sheet.

  Compute return on capital employees ratios

Compute the following ratios for Golden Times Ltd.:- Return on capital employees  - The profit margin - The turnover of capital.

  Financial instruments can have both debt and equity feature

Some financial instruments can have both debt and equity features. The most common example is convertible debt— bonds or notes convertible by the investor into common stock.

  Draw on face of financial statements

Show Conclusions you draw on face of financial Statements - Cash flow statement analysis is a very important part of analyzing a company's overall financial health.

  Concept of a social contract between business and society

MPA701 - Provide your opinion on whether CSR/sustainability reporting should be voluntary or mandatory. You must justify your opinion and provide at least two points for each side of the argument

  Journalize the withdrawal of posada under each assumptions

Journalize the withdrawal of Posada under each of the following assumptions. If Lamar's ownership interest is 20% of total partnership capital, what were Terrell's cash investment and the bonus to the new partner?

  Earnings per share and price-earnings ratio

Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. Determine the company's price-earnings ratio.

  Construct probabilit?y tree for problem

Eastern Airlines knows that 20% of its customers fly first class, 20% fly business class, and the rest fly coach. Of those customers who fly class, 70% are from the East Coast while 30% are from elsewhere. Construct a probabilit?y tree for this probl..

  Create a marketing display for your company

In the Cookie Company case in the last chapter, your team selected a cookie recipe for your company. In this chapter, your team will use that recipe to bake a batch of cookies, collect cost and time performance data related to the baking, create a ma..

  Compute the percentage changes in two consecutive years

Hall Corporation reported the following operating results for two consecutive years. Compute the percentage changes in Hall Corporation’s income statement components between the two years.

  What is the difference between horizontal and vertical

What is the difference between horizontal and vertical analysis? Each of these also has another name - do you know what it is?

  Determine shadees budgeted cost of closures

Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd