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151 on january 2nd mega sales borrows 12 500 00 cash on a note payable from alley le 4297152

 

151. On January 2nd Mega Sales borrows $12,500.00 cash on a note payable from Alley Lenders with terms 90 days, 12%. Mega Sales and Alley Lenders uses a 360 day year for interest calculations. Mega Sales makes adjusting entries at the end of each calendar quarter. Journalize the initiation of the loan, the recognition of interest expense for the quarter and the payment of the note on its due date. 

152. On July 1st Mega Sales borrows $20,000 cash 10%, 6 month note payable from Alley Lenders. Mega Sales and Alley Lenders uses a 360 day year for interest calculations. Mega Sales makes adjusting entries at the end of each calendar quarter. Journalize the initiation of the loan, the recognition of interest expense for the quarters and the payment of the note on its due date. 

153. On January 1st Mele Sales borrows $15,000 cash on a note payable from Senior Lenders with terms 90 days, 8%. Mele Sales and Senior Lenders uses a 360 day year for interest calculations. Mele Sales makes adjusting entries at the end of each calendar quarter. Journalize the initiation of the loan, the recognition of interest expense for the quarter and the payment of the note on its due date (round to the even dollar). 

154. A business issued a 90-day, 6% note for $10,000 to a creditor on account.  Journalize the
entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest.
 

RefAccountDebitCredit

155. On August 1, Bastion Company issued a 60-day note with a face amount of $80,000 to Jackson Company for merchandise inventory.
 

(a)Determine the proceeds of the note assuming the note carries an interest rate of 6%.

(b)Determine the proceeds of the note assuming the note is discounted at 6%.

 

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