Student Name:
Class:
Debit Credit
14,000,000
Maturity (January 31, 2017)
Interest payable
Notes payable
Cash
Interest revenue
L & T Bank
Interest receivable
Notes receivable
140,000
Issuance of Note (October 1, 2016)
Discount on notes payable
Notes payable
13,440,000
Adjusting Entry (December 31, 2016)
Interest expense
Discount on notes payable
Maturity (January 31, 2017)
Discount on notes payable
Interest rate for 4 months
Annual effective rate
Notes payable
Cash
Discount
Cash proceeds
Effective interest rate:
140,000
BLANTON PLASTICS
Problem 13-01
McGraw-Hill/Irwin
Instructor
Blanton Plastics
General Journal
Blanton Plastics
Account
Cash
Interest expense
Cash
Interest expense
L & T Bank
Interest receivable
Interest revenue
Interest expense
Interest payable
L & T Bank
Blanton Plastics
Notes payable
Notes receivable
Cash
BLANTON PLASTICS
Given Data P13-01:
Promissory note interest
Term of promissory note
Cash borrowed, 10/1/2016
Student Name:
Class:
Date Account Debit Credit
2016
(a) No entry
2017
Current portion of bank loan
Liability – refundable deposits
Sales taxes payable
Accrued interest payable
Long-Term Liabilities:
Bank loan to be refinanced on a long-term basis
(f) Cash 10,000,000
Bonds payable 10,000,000 «- Correct!
252,000$
Problem 13-02
McGraw-Hill/Irwin
Instructor
Current Liabilities:
Accounts payable
General Journal
CAMDEN BIOTECHNOLOGY
December 31, 2016
Partial Balance Sheet
CAMDEN BIOTECHNOLOGY
15,000,000$
10.5%
Given Data P13-02:
CAMDEN BIOTECHNOLOGY
2016
Short-term line of credit
Short-term line of credit interest rate
Local sales tax
Cash borrowed
Cash borrowed interest rate
Deposits received
September – December sales on account
State sales tax
2017
Issued 10-yr. bonds at face value
Trade accounts payable, 12/31/2016
Student Name:
Class:
Date Account Debit Credit
Mortgage note payable
Long-Term Liabilities
Bank notes payable
Unearned rent revenue
Advances from customers
Accrued interest payable
Current portion of long-term debt
(a) 25,000
25,000 «- Correct!
35,000$
Problem 13-04
McGraw-Hill/Irwin
Instructor
General Journal
MANUFACTURING EQUITABLE
Requirement 1:
Interest expense
Requirement 2:
Accounts payable
Current Liabilities
Interest payable
December 31, 2016
Partial Balance Sheet
MANUFACTURING EQUITABLE
No adjusting entry since interest has been paid
Advances from customers
Accounts receivable (to eliminate the credit balance)
to refinance has been demonstrated for that amount.
noncurrent liability, because (a) intent and (b) ability
up to December 31. $950,000 can be reported as a
Unearned rent revenue
Rent revenue
92,500$
35,000$
600,000$
Given Data P13-04:
MANUFACTURING EQUITABLE
Account balances:
Accounts receivable
Accounts payable
Bank notes payable
Mortgage note interest rate
Mortgage note payable
Additional information:
Bank notes interest rate
Cash toward principal
Amount refinanced
A/R subsidiary accounts credit balances
Tenant rent per year