Make the entry to record the partial refunding

Assignment Help Financial Accounting

Reference no: EM13754343

On August 31, Latty Co. partially refunded $493,000 of its outstanding 10% note payable made one year ago to Dugan State Bank by paying $493,000 plus $49,300 interest, having obtained the $542,300 by using $137,350 cash and signing a new one-year $445,000 note discounted at 9% by the bank.

a) Make the entry to record the partial refunding. Assume Latty Co. makes reversing entries when appropriate

b) Prepare the adjusting entry at December 31, assuming straight-line amortization of the discount

Reference no: EM13754343

Questions Cloud

Summarize the benefits of application-level gateways : xplain how a worm propagates itself. Summarize the benefits of application-level gateways. Explain why intrusion detection is necessary in terms of the known good state

What are phase-change materials and how do they work : What are phase-change materials and how do they work and what are the advantages of PCMs over other thermal energy storage systems?

Explain an iron curtain has descended upon the continent : What did churchil mean by statement "An iron curtain has descended upon the continent?

Current liabilities-warranty liability : Merritt Equipment Company sells computers for $1,620 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2014, the company sold 860 computers on credit. Bas..

Make the entry to record the partial refunding : On August 31, Latty Co. partially refunded $493,000 of its outstanding 10% note payable made one year ago to Dugan State Bank by paying $493,000 plus $49,300 interest, having obtained the $542,300 by using $137,350 cash and signing a new one-year $44..

Amount in five equal annual installments beginning : Assume that you borrow $5,000 from a friend and intend to pay the amount in five equal annual installments beginning one year from today. Your friend wishes to be reimbursed for the time value of money at an 5% annual rate. What is the required annua..

Question regarding portfolio performance : What advice would you give her to maximize her portfolio's performance?

What is approximate accounting rate of return for machine : A company is considering the purchase of a new machine for $54,400. Management predicts that the machine can produce sales of $37,600 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhe..

Describe the results of the bolshevik ascension : Describe the results of the Bolshevik ascension to power as the Kerensky government fell in November of 1917.

User Account

All Pages