final newconnect.mheducation.com/flow/connect.html final Seved Help The January
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final newconnect.mheducation.com/flow/connect.html final Seved Help The January 1, 2016 trial balance for the Lee Company is found on the trial balance tab. The beginning balances are assumed Collins Co entered into the following transactions involving short-term liabilities in 2016 and 2017/ (Use 360 days a year.) 2016 Apr. 28 Purchased $45,258 of merchandise on credit from Mitchell, terms are n/30. Collins uses the perpetual inventory system. Hay 19 Replaced the April 20 account payable to Mitchell with a 98-day, $37,098 note bearing 1ex annual interest along with paying $8,258 in cash. July 8 Borrowed S111,000 cash from NYR Bank by signing a 120-day, 10% interest-bearing note with a face value of S111,gee. Aug. 17 Paid the amount due on the note to Mitchell at the maturity date. Nov. 5 Paid the amount due on the note to NYR Bank at the maturity date. Nov. 28 Borrowed $72,000 cash from Sacramento Bank by signing a 60-day, 6% interest-bearing note with a face value of S72,eee. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Sacramento Banlk 2017 Jan. 27 Paid the amount due on the note to Sacramento Bank at the maturity date. Schedule of Calculation of 2017 payment Requirement General General Ledger Trial Balance of Payables Interest Journal Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that interest expense agrees with your journal entries and the trial balance. Collins Co. Calculation of interest expense August 17- Mitchell note: Principal Interest rate Number of days interest to be recorded in 2016 Type here to searchExplanation / Answer
1) Collins Co.
Calculation of Interest Expense (Amounts in $)
2) Lee Company
Trial Balance
January 1, 2017 (Amounts in $)
August 17 - Mitchell Note : Principal $37,000 Interest Rate 10% p.a. Number of days interest to be recorded in 2016 90 days Interest Expense ($37,000*10%*90/360) (A) 925 November 5 - NYR Bank Principal $111,000 Interest rate 10% p.a. Number of days interest to be recorded in 2016 120 days Interest expense ($111,000*10%*120/360) (B) 3,700 Accrued Interest in 2016 for Sacramento Bank $72,000*6%*33/360 (from Nov. 28 to Dec 31) (C) 396 Total Interest Expense in 2016 (A+B+C) 5,021Related Questions
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