Problem regarding the interest receivable

Assignment Help Accounting Basics
Reference no: EM13986638

Interest Receivable

On June 1, 2014, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in 60 days with interest at 10%.

Required

1. Prepare the journal entry on MicroTel's books on June 1, 2014.

2. Prepare the adjusting entry on MicroTel's books on June 30, 2014.

3. Prepare the entry on MicroTel's books on July 31, 2014, when MaxiDriver repays the princi- pal and interest.

Reference no: EM13986638

Questions Cloud

How far above court is tennis ball when it leaves racket : A tennis ball is struck and departs from the racket horizontally with a speed of 29.4 m/s. The ball hits the court at a horizontal distance of 20.7 m from the racket. How far above the court is the tennis ball when it leaves the racket?
What happens to the time it takes for the noodles to cook : I am very hungry and want the noodles to cook faster, so I turn up the heat from medium to high. What happens to the time it takes for my noodles to cook, and the temperature of the boiling water?
Property taxes payable-annual adjustments : Lexington Builders owns property in Kaneland County. Lexington's 2013 property taxes amounted to $50,000. Kaneland County will send out the 2014 property tax bills to property owners during April 2015. Taxes must be paid by June 1, 2015. Assume th..
How much work is done on the ethanol : Assume that the vapor is an ideal gas (not a good approximation). a) How much work is done on the ethanol? b) What is the change in internal energy of the ethanol?
Problem regarding the interest receivable : On June 1, 2014, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in 60 days with interest at 10%.
What was the rate of acceleration : A ball is rolling down a hill was displaced 19.6 m while uniformly accelerating from rest. If the final velocity was 5.00 m/s. What was the rate of acceleration
What are the longterm global impacts of fukushima : What are the longterm global impacts of Fukushima likely to be, both in terms of the health consequences and the political/public policy ones
What is her new rate of rotation : A skater extends her arms, holding a 2kg mass in each hand. She is rotating about a vertical axis at given rate. She brings her arms inward toward her body in such a way that the distance of each mass from the axis changes from 1m to 0.50 m. what ..
Which the electron makes the transitions : What are the minimum value and maximum value of ni for the energy levels from which the electron makes the transitions corresponding to these lines?

Reviews

Write a Review

Accounting Basics Questions & Answers

  The general ledger account for accounts receivable shows a

the general ledger account for accounts receivable shows a debit balance of 40000. the allowance for uncollectible

  On january 1 2011 parent corporation acquired a controlling

on january 1 2011 parent corporation acquired a controlling interest in the voting common stock of foxboro co. at the

  Determination of taxable income

Brown Corporation, an accrual basis corporation, has taxable income of $150,000 in the current year. Included in its determination of taxable income are the following transactions.

  Consider a situation in which you or someone you know

consider a situation in which you or someone you know engaged in a written or oral contract containing specific

  Making informed and ethical business decisions

Identify the audiences, purposes, and natures of financial statements and managerial reports. Explain the use of financial accounting information in making informed and ethical business decisions

  Determining the accrual basis of accounting

For the following situations, indicate the date on which revenue would be recognized, assuming the accrual basis of accounting.

  Journal entry to record southern tax expense

(a) Prepare the journal entry to record Southern's tax expense for 2010. (b) Calculate Southern's net after tax income for 2010.

  Matching principle because of depreciation expense

Matching principle because the cash was paid in 2010 and should be expensed in 2010. Matching principle because depreciation expense should be $8,000.

  Forecasts set by financial analysts

Some people believe that the audit industry is out of touch with the realities of business. They believe that some accounting standards are not suited for modern times. Have financial statements become a game of matching earnings forecasts set by ..

  Compute the cost per equivalent unit of materials compute

pet products manufactures dry dog food. the following information pertains to the month of feb.beginning wip 5000

  Business plan case study-john bauer business plan

The business plan case study focuses on the possibilities of Kurt and John Bauer small business being successful. The objective of this paper is to outline what would be included in the business plan, complete a feasibility analysis based on three..

  Total debt to total assets ratio

Venture Corporations total assets are 3 times greater than total equity; total equity is 50% of total liabilities. The total debt to total assets ratio is

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