Zero-interest-bearing note

Assignment Help Accounting Basics
Reference no: EM13128119

Signed a three-month, zero-interest-bearing note on November 1, 2010 for the purchase of $150,000 of inventory. The face value of the note was $152,205. Assuming Glaus used a "Discount on Note Payable" account to initially record the note and that the discount will be amortized equally over the 3-month period, the adjusting entry made at December 31, 2010 will include a:

a) debit to Discount on Note Payable for $735.

b) debit to Interest Expense for $1,470.

c) credit to Discount on Note Payable for $735.

d) credit to Interest Expense for $1,470.

Reference no: EM13128119

Questions Cloud

What is reported and how to disclose the information : The SEC has always wanted and expected more information and disclosure in the financial statements.
Calculate net cash provided by operating activities : Salvador, Inc. reported net income of $2.5 million in 2008. Depreciation for the year was $260,000, accounts receivable decreased $350,000, and accounts payable decreased $280,000. Calculate net cash provided by operating activities using the indir..
First and second partial derivatives : The problem is: Z = X COS Y - Y COS X-Find all of the first and second partial derivatives of this problem.
How much heat (in kj ) is required : How much heat (in kJ ) is required to warm 12.0 grams of ice, initially at -12.0 Celsius, to steam at 112.0 Celsius? The heat capacity of ice is 2.09 J/g*Celsius and that of steam is 2.01 J/g*Celsius?
Zero-interest-bearing note : Signed a three-month, zero-interest-bearing note on November 1, 2010 for the purchase of $150,000 of inventory. The face value of the note was $152,205.
Describe whether direct labor is a fixed or a variable cost : Describe whether direct labor is a fixed or a variable cost. What are the pros and cons of management treating direct labor as a variable cost? Are there ethical issues to be considered here?
Probability that twelve are serving time for drug dealing : A random sample of 16 federal inmates is selected. What is the probability that exactly 12 are serving time for drug dealing?
How are merchandising inventories accounted : Inventory is the most important asset for many merchandising companies. How are merchandising inventories accounted for under U.S. GAAP?
Differentiation of logarithmics functions : Differentiate the function f(x) =

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Eps effect of convertible preferred stock

Thrifty Co. reported net income of $465,000 for its fiscal year ended January 31, 2011. At the beginning of that fiscal year, 200,000 shares of common stock were outstanding.

  Prepare a balance sheet and income statement

Make a balance sheet and income statement as of December 31, 2003, for Sharpe Manufacturing Company from the following information.

  Previous and adjusted balances

Assuming a 30-day period in November, calculate November's interest. Also, calculate the interest Nancy would have paid with: a) the previous balance method, b) the adjusted balance method.

  Treasury stock purchase-reissue journal entry

Prepare journal entries (A,B,C) and show proper disclosure (C) to reflect the following treasury stock transactions showing how each is accounted for under the cost method. (show computation)

  Sec and european equivalent views of gaap

The SEC and its European equivalent are trying to merge their respective views of GAAP (Generally Accepted Accounting Principles). What are the easy points and what are the stumbling blocks?

  Calculation of deferred tax asset and liability at the end

Machinery was acquired in January for $300,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, accelerated depreciation is used and Orkin may deduct 14% for 2012.

  Target costing in today business environment

The T&M company wants to expand internationally. The marketing department suggests starting with specialty stores in Italy since a survey indicates that American quality towels are appreciated in Italy. The current price is about 20% higher than c..

  Deferred tax expense

The enacted tax rate increased to 30 percent in Year 2 compared to an enacted rate of 20 percent in the prior year. At December 31, Year 2, the company would record a deferred tax expense of:

  Reporting the bond liability

On December 31 year 1 Todd Corporation issued 500 of its 10% $1,000 bonds at 105. Todd Corporation uses IFRS. The bonds were issued through an underwriter to whom Todd paid bond issue costs of $15,000. On December 31 Year 1 balance sheet Todd shou..

  Problem regarding budgeted net income

The Adams Company, a merchandising firm, has budgeted its activity for November according to the following information:

  Bledsoe large cap stock fund

Using the returns for the Bledsoe Large-Cap Stock Fund and the Bledsoe Bond Fund, graph the opportunity set if feasible portfolios.

  What is your tax liability

While rummaging through your grandfather's attic, you came across a rare civil war document: An official letter by Lincoln to one of his generals. You engaged Sotheby's Auction House and sold the document for $100,000. What is your tax liability?

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