On April 12, Hong Company agrees to accept a 60-day, 8%, $5,700 note from Indigo Company to extend the due date on an overdue account. What is the journal entry that Indigo Company would make, when it records payment of the note on the maturity date

1 answer
Question:

On April 12, Hong Company agrees to accept a 60-day, 8%, $5,700 note from Indigo Company to extend the due date on an overdue account. What is the journal entry that Indigo Company would make, when it records payment of the note on the maturity date

Answers

Answer:Interest = Principal Amount × Rate × Number of days / 365Interest = $5,700 * 10% * 60/365Interest = $96.70Cash to be paid = Principal Amount + InterestCash to be paid = $5,700 + $96.70Cash to be paid = $5796.70On the date of maturity, journal entry to make the payment of note payable is given belowDate       Account Title & Explanation              Debit            Credit                Note Payable                                     $5,700                Interest Expense                                $96.70                           Cash                                                             $5796.70

Similar Solved Questions

1 answer

How are W.E.B DuBios and Booker T. Washington difference? Need help????!!!!!

How are W.E.B DuBios and Booker T. Washington difference? Need help????!!!!!...
2 answers

PLEASEEEE PLEASEEE HELP ME!!!!!!!!!!!!!!!! I’m beggin plsss 20 POINTS!!! (Show work) Explanation (optional)

PLEASEEEE PLEASEEE HELP ME!!!!!!!!!!!!!!!! I’m beggin plsss 20 POINTS!!! (Show work) Explanation (optional)...
1 answer

Select the correct answer. Which graph represents the solution to this system of inequalities? y < -x − 3 y > 2x – 4 A. B. C. D.

Select the correct answer. Which graph represents the solution to this system of inequalities? y < -x − 3 y > 2x – 4 A. B. C. D....
1 answer

Clarity the similarities and differences between plough and tractor.​

Clarity the similarities and differences between plough and tractor.​...
1 answer

What energy convertion happens when green plants use energy from the sun to make sugar?

What energy convertion happens when green plants use energy from the sun to make sugar?...
1 answer

Which of these new forms of energy projects will require a hydrologist as an important person on the team for developing the project? A. a waste-to-energy project B. a tidal turbine project C. an algal biofuel project D. Integrated gasification combined cycle project

Which of these new forms of energy projects will require a hydrologist as an important person on the team for developing the project? A. a waste-to-energy project B. a tidal turbine project C. an algal biofuel project D. Integrated gasification combined cycle project...
1 answer

Which of the following ethnic groups wanted to break from Australia control before world war 1? A. Turks B. Serbs C. Russians D. French

Which of the following ethnic groups wanted to break from Australia control before world war 1? A. Turks B. Serbs C. Russians D. French...
1 answer

Mr. Sánchez owns a square field. The side lengths are 0.9 kilometers. There are 1,980 prairie dog burrows in the fields. What is the approximate density of prairie dog burrows in burrows per square kilometer?

Mr. Sánchez owns a square field. The side lengths are 0.9 kilometers. There are 1,980 prairie dog burrows in the fields. What is the approximate density of prairie dog burrows in burrows per square kilometer?...
1 answer

Why did the british enact the navigation acts?

Why did the british enact the navigation acts?...
1 answer

Write the equation of the line shown on graph

Write the equation of the line shown on graph...
2 answers

Replace it with a noun

Replace it with a noun...
1 answer

Classify each of the following based on the macroeconomic definitions of saving and investment. 1. Kate borrows money to build a new lab for her engineering firm. 2. Manuel purchases a new condominium in Detroit. 3. Hubert purchases a corporate bond issued by a car company. 4. Poornima purchases stock in Goohoo, an information technology company.

Classify each of the following based on the macroeconomic definitions of saving and investment. 1. Kate borrows money to build a new lab for her engineering firm. 2. Manuel purchases a new condominium in Detroit. 3. Hubert purchases a corporate bond issued by a car company. 4. Poornima purchases...
1 answer

X =(5x - 10) 130° Find x

X =(5x - 10) 130° Find x...
2 answers

There are a total of 18 socks. If the ratio of purple socks to white socks is 2 to 4, how many of them are white?

There are a total of 18 socks. If the ratio of purple socks to white socks is 2 to 4, how many of them are white?...
1 answer

An event tag is a code snippet that works directly with a global site tag to track customer actions specified by an advertiser as conversions. Which types of event tags can be created?

An event tag is a code snippet that works directly with a global site tag to track customer actions specified by an advertiser as conversions. Which types of event tags can be created?...
2 answers

A is directly proportional to B. If A is 9, when B is 3, then A is _____, when B is 6.

A is directly proportional to B. If A is 9, when B is 3, then A is _____, when B is 6....
1 answer

Angeline made a dish with 5 1/3 cups of pasta. One serving is 0.2 cups. How many servings of pasta were in the dish Angeline made?

Angeline made a dish with 5 1/3 cups of pasta. One serving is 0.2 cups. How many servings of pasta were in the dish Angeline made?...
1 answer

Which colony correctly completes the analogy below-Massachusetts" is to refuge of english purtians as __ is to refuge of english catholics

Which colony correctly completes the analogy below-Massachusetts" is to refuge of english purtians as __ is to refuge of english catholics...

-- 0.048972--