Documents about Interest Expense Interest
ORIE 350 Lecture 10
Cornell, ORIE 350
Excerpt: ... ORIE 350 Lecture 10 Asset Turnover Ratio = Book value = Historical cost accumulated depreciation Equipment(net)= historical cost- accumulated depreciation BONDS To raise cash, large corporations sells bonds It is a form of long term debt To pay it b ...
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Ch. 8_15
Drake, ACCT 042
Excerpt: ... E8-15 Jan 2004 2 Purchases Accounts Payable 2 Accounts Payable Notes Payable $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 270 $ 18,270 $ 12,000 $ 12,000 $ $ 6,000 360 $ $ $ 6,000 140 $ $ 15,000 $ 15,000 $ 150 $ $ 15,000 $ 225 $ 15,225 150 6,140 6,360 Feb 2004 16 Notes Payable Interest Expense Cash 15 Accounts Payable Notes Payable 13 Notes Payable Interest Expense Cash 12 Notes Payable Interest Expense Cash 1 Accounts Payable Notes Payable 31 Interest Expense Interest Payable 15 Notes Payable Interest Expense Cash Mar 2004 Jun 2004 Aug 2004 Dec 2004 Dec 2004 Jan 2004 ...
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OR350 Feb 20 notes
Cornell, ORIE 350
Excerpt: ... Feb 20, 2008 BOND EQUATION PV = A[(1-(1+i)^(-n) / i ] + FV/(1+i)^n Interest payments Face value payment PV equal to cash received N = number of 6 month periods FV = face value of bond i = 6 month interest rate And yield = 2; A = [face interest rate] ...
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OR350 Feb 20 notes
Cornell, ORIE 350
Excerpt: ... Feb 20, 2008 BOND EQUATION PV = A[(1-(1+i)^(-n) / i ] + FV/(1+i)^n Interest payments Face value payment PV equal to cash received N = number of 6 month periods FV = face value of bond i = 6 month interest rate And yield = 2; A = [face interest rate] ...
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Chapter 10 Homework 1
Lehigh, ACCT 151
Excerpt: ... Professor Smith ACCT151 20 November 2008 Chapter 9/10 Homework 1 E9-6,P9-1,E10-2,E10-5 E9-6) 1.a) $9.00 2.a) 2% P9-1) Jan1 Cash Notes Payable Jan10 Line of Credit 17,600.00 2,400.00 20,000.00 150,000.00 150,000.00 100,000.00 3,000.00 103,000.00 1,250.00 1,250.00 1,500.00 1,500.00 20,000.00 20,000.00 200,000.00 200,000.00 12,000.00 1,080.00 12,000.00 1,080.00 25,000.00 1,250.00 1,250.00 27,500.00 b) $15.00 b) 4.5% 25,000.00 25,000.00 400,000.00 To 400,000.00 Line of Credit Payable Feb1 Cash Interest Expense Notes Payable Mar1 Cash Line of Credit Jun1 Line of Credit Interest Expense Cash Jun30 Interest Expense Interest Payable Interest Expense Interest Payable Aug1 Notes Payable Cash Sep1 Cash Line of Credit Nov1 Accounts Payable Interest Expense Notes Payable Interest Payable Dec31Notes Payable Interest Payable Interest Expense Cash b) Feb1 20,000.00 no interest Mar1 50,000.00 2,625.00 Sep1 200,000.00 6,000.00 Nov1 12,000.00 160.00 E10-2) 1) $500,000.00 2) 3)a. b. c. E10-5) $ 20,000.00 $ 20,000.00 * 13 ...
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10-1A
Harold Washington College - CCC, BUS 181
Excerpt: ... 10-1A 1 7-Apr Cash Notes Payable 10-May Equipment Interest Expense ($125,000 120/360 6%) Notes Payable 6-Jun Notes Payable Interest Expense ($36,000 60/360 8%) Notes Payable Cash 6-Jul Notes Payable Interest Expense ($36,000 30/360 9%) Cash 3-Aug Merchandise Inventory Accounts PayableHamilton Co. 2-Sep Accounts PayableHamilton Co. Notes Payable 7 Notes Payable Cash 1-Nov Notes Payable Interest Expense ($15,000 60/360 6%) Cash 15 Store Equipment Notes Payable Cash 15-Dec Notes Payable Interest Expense ($13,500 8% 30/360) Cash 21-Dec Litigation Loss Litigation Claims Payable 36,000 122,500 2,500 36,000 480 36,000 270 15,000 15,000 125,000 15,000 150 150,000 13,500 90 30,000 2 a. Product Warranty Expense Product Warranty Payable 8,400 b. Interest Expense Interest Payable 828 ($13,500 8% 46/360 6. 36,000 125,000 36,000 480 36,270 15,000 15,000 125,000 15,150 94,500 55,500 13,590 30,000 8,400 828 ...
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ACT_3392_Chp_21_Homework_Solutions
Troy, ACT 3392
Excerpt: ... Intermediate Accounting II Amanda N. Paul, CPA, MBA Troy University Chapter 21 EXERCISE 21-1 (c) This is a capital lease to Burke since the lease term (5 years) is greater than 75% of the economic life (6 years) of the leased asset. The lease term is 831/3% (5 6) of the assets economic life. (b)Computation of present value of minimum lease payments: $8,668 X 4.16986* = $36,144 *Present value of an annuity due of 1 for 5 periods at 10%. EXERCISE 21-1 continued (c) 1/1/07 Leased Machine Under Capital Leases Lease Liability Lease Liability Cash 12/31/07 36,144 36,144 8,668 8,668 Depreciation Expense 7,229 Accumulated Depreciation Capital Leases ($36,144 5 = $7,229) Interest Expense Interest Payable [($36,144 $8,668) X .10] 2,748 7,229 2,748 1/1/08 Lease Liability Interest Payable Cash 5,920 2,748 8,668 EXERCISE 21-2 (c) To Delaney, the lessee, this lease is a capital lease because the terms satisfy the following criteria: 1. 2. The lease term is greater than 75% of the economic life ...
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exercise 3.5
Grambling State, ACCT 311
Excerpt: ... P3-5 2007 Dec. 31 Supplies Expense Office Supplies To record office supplies used ($129 + $480 - $174). Prepaid Rent Rent Expense To recognize unexpired rent ($3,600 x 1/12). 435 435 31 300 300 P3-5 (continued) Dec. 31 Discount on Notes Payable* Interest Expense To recognize unexpired interest ($1,200 x 2/12). Depreciation Expense Accumulated Depreciation: Buildings Accumulated Depreciation: Store Equipment Accumulated Depreciation: Office Equipment Buildings: $(100,000 - 8,000) 20 Store Equipment: $(65,000 - 2,000) 10 Office Equipment: $(15,000 - 1,500) 10 x 8/12 Interest Expense Interest Payable ($12,000 x 12% x 8/12). Insurance Expense Prepaid Insurance To record expired insurance ($720 3 x 7/12). Interest Receivable Interest Revenue To record earned but uncollected interest revenue ($7,000 x 10% x 5/12). Rent Revenue Unearned Rent To record unearned rent ($960 x 5/8). Travel Expenses Advances to Sales Personnel 200 200 31 11,800 4,600 6,300 900 31 960 960 140 140 31 31 ...
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Chapter 03
Findlay, ACCT 220
Excerpt: ... Exercise 3-1 1. 2. 3. B. E. C. 4. 5. 6. F D A. Exercise 3-2 a. Unearned Fee Revenue . Fee Revenue . To record earned portion of fee received in advance. Wages Expense . Wages Payable . To record wages accrued but not yet paid. Depreciation Expense-E ...
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Quiz2 Solution
University of Florida , ACG 3481
Excerpt: ... $750 of such services was earned but not yet billed to the insurance companies. b. Utility expenses incurred but not yet paid prior to January 31 totaled $520. c. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $400 per month. Interest is $500 per month. d. Purchased a one-year malpractice insurance policy on January 1 for $12,000. e. Purchased $1,600 of dental supplies. On January 31, determined that $500 of supplies were on hand. Prepare the adjusting entries on January 31. Omit explanations. (1 point for each entry if right accounts; another 1 point if amounts are correct and the debit and credit are correct). a. Accounts receivable Service revenue b. Utilities expense Accounts (or utilities) payable c. Depreciation expense A/D Interest expense Interest payable (Must have both entries for full 2 points) 750 750 520 520 400 400 500 500 ACG3481 Quiz 2 Name _ Lab Period _ ...
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Chapter 2 & 3
Penn State, ACCTG 211
Excerpt: ... P2-4A a) Revenue -Expenses Net Income Expenses = Revenue - Net Income $350 $110. $240. b) Beg. R.E. Net Income Dividend End. R.E. $140. $110. ? Dividend=$50 $200. c) Liability SE. Total SE + Liability C.C.= d) A= ? A=$200 $50. ? $600. $60. $380. SE = $550 L+ $60. SE $140. P3-2A Prepaid Insurance Cleaning Supplies Unearned Service Fees Notes Payable Service Fees Wages Expense Truck Rent Expense Truck Fuel Expense Insurance Expense Supplies Expense Interest Expense Interest Payable Wages Payable Prepaid Rent - Truck Prepaid Rent - Truck In Text 1,800 $2800. 3,000 5,000 96,000 75,000 3,900 1,100 0 0 0 0 0 0 0 Adjuste -1,200 600 -2,300 $500. -1,000 $2000. 0 $5000. 1,000 $97,000 900 $75900. -300 $3600. 0 $1100. 1,200 $1200. 2,300 $2300. 150 $150. 150 $150. 900 $900. 300 $300. $300. Income Statement Revenue Service Fees Expenses Insurance Wages Truck Rent Truck Fuel Supplies Interest Total Expenses Net Income 97,000 1,200 75,900 3,600 1,100 2,300 150 84,250 $12,750 P3-4A Brandon Gaus E ...
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ch 4
Arizona, ACCT 200
Excerpt: ... CHAPTER 4 Accrual Accounting Concepts SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 4-2 (a) Prepaid Insurance-to recognize insurance expired during the period. (b) Depreciation Expense-to account for the allocation of the cost of an asset to expense du ...
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chapter 9 prob 1
UNL, ACCT 201
Excerpt: ... LO 2 PROBLEM 9-1 NOTES AND INTEREST 1. a. Jan. 1 Cash Note Payable To record loan at 10% interest. Assets +25,000 = Liabilities +25,000 + 25,000 25,000 Owners' Equity b. Jan. 10 Memorandum entry only. c. Feb. 1 Equipment Discount on Notes Payable Notes Payable To record non-interest-bearing note. $20,000 12% 1/2 = $1,200. Assets +18,800 = Liabilities +20,000 1,200 + 18,800 1,200 20,000 Owners' Equity d. Mar. 1 Cash Loan Payable To record loan with line of credit. Assets +150,000 = Liabilities +150,000 + 150,000 150,000 Owners' Equity 100,000 2,250 102,250 Owners' Equity 2,250 2,750 2,750 e. June 1 Loan Payable Interest Expense (100,000 9% 3/12) Cash To record partial payment of line of credit. Assets 102,250 = Liabilities 100,000 + f. June 30 Interest Expense Interest Payable To record interest on interest-bearing loan. $25,000 10% 1/2 = $1,250 $50,000 9% 4/12 = 1,500 $2,750 Assets = Liabilities +2,750 + Owners' Equity 2,750 1,000 1,000 June 30 Interest ...
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ch 9_Solutions
Cornell, HA 230
Excerpt: ... M9-2) Cash Notes Payable, short-term Interest Expense Interest payable E9-1) 1) Working capital = 170,100 109,200 = 60,900 Current ratio = (695,100 525,000) / (60,000 + 12,000 + 3,000 + 14,000 + 7,800 + 2,000 + 10,000 + 400) = 1. 5577 Working capital is important to the managers because it has a significant impact on the health and profitability of the company. If the company has too little working capital, it would be risking its ability to meet its obligations to creditors. If the company has too much working capital then it might tie up resources in unproductive assets and incur unnecessary costs. Current ratio is used by financial analysts to indicate whether the company has the resources to pay its short-term debt. A ratio of 1 or higher shows that the company can pay for its short-term debt with the current assets it possesses. However, too high of a ratio may indicate that the company is not using its resources efficiently. The current ratio for Wilemon Co. is a solid ratio and not very alarmin ...
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ACCT_2000_Exam_2_notes[1]
LSU, ACCT 2000
Excerpt: ... iability Note Payable issued 7/1/03, matures 7/1/08 Long Term Liability N/P issued 7/1/07, 5 year mature 7/1/12 Accounts Payable purchased goods/services on credit. Net 30 day payment term. - ~ done by word Notes Payable written promise/interest provision 1. Interest Calculation 2. Determination of due date Principle x Rate x Time factor = Interest On 11/1/07, Company borrow $100,000; 12% year Principle and Interest due in 180 days. 11/1/07 Cash N/P $100,000 $100,000 PxRxT = $100K x 12% x 60/360 = $2,000 12/31/07 Interest Expense Interest Payable $2,000 $2,000 PxRxT = $100K x 12% x 180/360 = $6,000 Current Liability - Accounts Payable (bought goods/services on credit) - Notes Payable - Accrued Liability - Unearned Revenues o Received cash payment from customer in advance - Payroll Taxes Payable "with holding" Gross Pay Federal Income Tax Social Security Tax Medicare Tax State Tax $1000 -$200 -$62 -$14.50 -$30 $703.50 Net Paycheck - Income Taxes Payab ...
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ACIS 2004 Final Exam
Virginia Tech, ACIS 2004
Excerpt: ... t to equity on a company's balance sheet. + Stockholders like a lot of debt if the company can take advantage of positive financial leverage. + Creditors prefer less debt and more equity because equity represents a buffer of protection. (3) Times Interest Earned Income Before Taxes and Interest Expense Interest Expense (4) Plant Assets to LT Liab. Net Plant Assets Long-term Liabilities Profitability Ratios (1) Net Margin Net Income Net Sales (2) Asset Turnover Net Sales Average Total Assets (3) Return on Investment Net Income Average Total Assets Ratio of wealth generated to the amount invested (4) Return on Equity Net Income Avg. Stockholders' Equity Measures the profitability of the stockholders' investment 8 Stock Market Ratios (1) Earnings Per Share Net Income Avg. Common Shares O/S indicates how much income was earned for each share of common stock outstanding (2) Book Value Per Share Stockholders' Equity Preferred Rights Avg. Common Shares O/S (3) Price-earnings Ratio Market Price Per S ...
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Project%20#1.xlsx
Colorado, BCOR 2000
Excerpt: ... Payable Accounts Payable Unearned Revenue Common Stock Dividends Service Revenue Cell Phone Expense Salaries Expense 500 50 800 7450 Credit 2000 0 675 800 3975 7450 Dec. 31 Supplies Expense Supplies 31 Depreciation Expense Accumulated DepreciationOffice Equipment 31 Amortization Expense - Website Website 31 Interest Expense Interest Payable 31 Insurance Expense Prepaid Insurance 45 45 40 40 50 50 200 200 \ ...
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Project #1
Colorado, BCOR 2000
Excerpt: ... ayable Accounts Payable Unearned Revenue Common Stock Dividends Service Revenue Cell Phone Expense Salaries Expense 2000 0 675 800 500 3975 50 800 7450 7450 Dec. 31 Supplies Expense Supplies 31 Depreciation Expense Accumulated Depreciation-Office Equipment 31 Amortization Expense - Website Website 31 Interest Expense Interest Payable 31 Insurance Expense Prepaid Insurance 45 45 40 40 50 50 200 200 ...
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chap15
Edgewood, BUS 481
Excerpt: ... Ch 15 Debt and Equity Capital Sources of Capital for a Business Common Stock Preferred Stock Interest Bearing Debt Retained Earnings Information is in the B/S; Transactions detailed in the SSE and the SCF Financing Section Interest Beari ...
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Chapter 21 Solutions
University of Texas, ACC 326
Excerpt: ... CHAPTER 21 Accounting for Leases CHAPTER 21 Accounting for Leases SOLUTIONS TO EXERCISES EXERCISE 21-1 (1520 minutes) (a) This is a capital lease to Burke since the lease term (5 years) is greater than 75% of the economic life (6 years) of 1 the lea ...
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Exam I Solution AJ
SUNY Buffalo, MGA 201
Excerpt: ... PART A: Version 1 Entry # Account Titles 1 Accounts Receivable Revenue 2 Supplies Expense Supplies $750 x .5 Interest Expense Interest Payable $16,000 x .09 x 8/12 Unearned Revenue Revenue $3,600 x 1/3 Dr. 4,400 4,400 375 375 960 960 1,200 1,200 Cr. 3 4 PART B: Unadjusted Net Income AJE 1: AJE 2: AJE 3: AJE 4: Net Income $150,000 4,400 ( 375) ( 960) 1,200 $154,265 PART A: Version 2 Entry # Account Titles 1 Interest Expense Interest Payable $15,000 x .08 x 10/12 2 Unearned Revenue Revenue $4,800 x 1/3 Accounts Receivable Revenue Supplies Expense Supplies $650 x .5 Dr. 900 900 1,600 1,600 3,300 3,300 325 325 Cr. 3 4 PART B: Unadjusted Net Income AJE 1: AJE 2: AJE 3: AJE 4: Net Income $225,000 ( 900) 1,600 3,300 ( 325) $228,675 PART A: Version 3 Entry # Account Titles 1 Unearned Revenue Revenue $6,000 x 1/3 2 Interest Expense Interest Payable $18,000 x .10 x 7/12 Supplies Expense Supplies $550 x .5 Accounts Receivable Revenue Dr. 2,000 2,000 1,050 1,050 275 275 5,500 5,500 Cr. 3 4 PART B: Un ...
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P3-5
University of Phoenix, ACC 363
Excerpt: ... Jane Alexander Theater Adjusting Entries For the Year Ended December 31, 2007 31-Dec Depreciation Expense Acc. Dep. - Equipment 31-Dec Interest Expense Interest Payable 31-Dec Cash Unearned Admiss. Rev. 31-Dec Advertising Expense Prepaid Advertising Exp. 31-Dec Salaries Expense Salaries Payable Debit 9,500 1,800 Credit 9,500 1,800 50,000 50,000 1,100 1,100 4,700 4,700 Income Income Statement For the Year Ended December 31, 2007 Revenues Admissions revenue Expenses Interest Expense Advertising Expense Salaries Expense Total expenses $430,000 $3,200 12,580 62,300 78,080 ...
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