Gg.103. ShOn July 1, 2020, Concord Ltd. borrowed $15,500 by signing a two-year, 4% note payable. The note is payable in two annualinstalments of $8,218 on June 30. The company records adjusting journal entries annually at year end on December 31.(a)Record (1) the receipt of the $15,500 cash and the issue of the note on July 1, 2020; (2) the accrual of interest on December 31.2020: (3) the first payment on June 30, 2021; and (4) the accrual of interest on December 31, 2021. (Round answers to the nearestwhole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debitentries before credit entries.)Date20202021Account Titles and ExplanationDebitCredit

Notes payable refers to the amount of liability that the person/ company owe from investors,…

Answered: Gg.103.

Business

Accounting

Gg.103.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Gg.103.

Sh
On July 1, 2020, Concord Ltd. borrowed $15,500 by signing a two-year, 4% note payable. The note is payable in two annual
instalments of $8,218 on June 30. The company records adjusting journal entries annually at year end on December 31.
(a)
Record (1) the receipt of the $15,500 cash and the issue of the note on July 1, 2020; (2) the accrual of interest on December 31.
2020: (3) the first payment on June 30, 2021; and (4) the accrual of interest on December 31, 2021. (Round answers to the nearest
whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit
entries before credit entries.)
Date
2020
2021
Account Titles and Explanation
Debit
Credit

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