Illustration 7 16 chapter 7 58 lo 8 explain

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Unformatted text preview: to be high for this type of note). Instructions: a) Prepare the April 1, 2010, journal entry for Prince Company. b) Prepare the journal entry for Prince’s collection of $350,000 of the accounts receivable during the period from April 1, 2010, through June 30, 2010. c) On July 1, 2010, Prince paid Third National all that was due from the loan it secured on April 1, 2010. Chapter 7-56 LO 8 Explain accounting issues related to disposition LO of accounts and notes receivable. of Secured Borrowing (PLEDGING) Secured Borrowing ((PLEDGING) PLEDGING) Secured Secured (PLEDGING) Exercise 7-13 continued Dat e (a) Account Tit le Debit Ca s h 2 9 0 ,0 0 0 Fina nc e Ch a r g e Credit 10 ,0 0 0 No te s Pa y a b le 3 0 0 ,0 0 0 ( $ 5 0 0 ,0 0 0 x 2 % = $ 10 ,0 0 0 ) (b ) Ca s h 3 5 0 ,0 0 0 Ac c o unts Re c e iva b le (c ) 3 5 0 ,0 0 0 No te s Pa y a b le 3 0 0 ,0 0 0 I nte r e s t Ex pe ns e 7 ,5 0 0 Ca s h 3 0 7 ,5 0 0 ( 10 % x $ 3 0 0 ,0 0 0 x 3 / 12 = $ 7 ,5 0 0 ) Chapter 7-57 LO 8 Explain accounting issues related to disposition LO of accounts and notes receivable. of Sales of Receivables (FACTORING...
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This note was uploaded on 01/29/2013 for the course ACC 223 taught by Professor Staff during the Fall '12 term at Niagara University.

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