Record any required entries related to loan as of december

Assignment Help Financial Accounting

Reference no: EM131889755

Problem

Julio Ivors operates a proprietorship. Sales have been very good in recent months, resulting in a substantial amount of cash on hand. However, Julio knows that in six months, he will have to purchase more inventory for the next season. He realizes that if he leaves the cash in the bank, he will receive an insignificant amount of interest. He, therefore, decides to loan his excess cash of $20,000 to his brother-in-law, charging interest at an annual rate of 12%. Assume Julio Ivors' proprietorship has a year-end of December 31.

Required:

1- Record the entry when issuing the loan on August 15.

2- Record any required entries related to the loan as of December 31.

3- Record the deposit of the re-payment of the loan with interest on February 15.

Reference no: EM131889755

Questions Cloud

Prepare a cost of goods manufactured schedule : From this information, prepare a cost of goods manufactured schedule, an income statement, and the current assets section of the balance sheet.

Compute the direct labor time variance : The Joyner Corporation had 7,648 actual direct labor hours at an actual rate of $12.50 per hour. Compute the direct labor time variance.

What would be the minimum acceptable price per unit : What would be the minimum acceptable price per unit for the special order? What would be the opportunity cost of each unit delivered to the overseas customer?

What is the depreciation expense for the given building : Using the straight-line method, what is the depreciation expense for this building for the fiscal year ending December 31, 2009?

Record any required entries related to loan as of december : Record any required entries related to the loan as of December 31. Record the deposit of the re-payment of the loan with interest on February 15.

Prepare ghouls journal entry or entries : On July 1, 2014, Ghouls Unlimited leased a mobile haunted house to Skeptics, Inc. Prepare Ghouls' 7/1/14 journal entry or entries.

Calculate the minimum number of jars of silver polish : Calculate the minimum number of jars of silver polish that would have to be sold to justify further processing of Grit 337.

Journalize the entries to record the given transactions : Journalize the entries to record the following transactions for Mountain Realty Inc. Refer to the Chart of Accounts for exact wording of account titles.

Journalize the sales transactions for a-and-m products : Journalize the following sales transactions for A&M Products. The company uses a perpetual inventory system.

User Account

All Pages