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Friday, August 6, 2010

Valix Finacc vol 1 Problem 6-9

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 6-9


July     1   Accounts receivable – assigned                                          800,000
                       Accounts receivable                                                                               800,000

           1   Cash (640,000 – 24,000)                                                        616,000
                Service charge (3% x 800,000)                                                24,000
                       Note payable – bank                                                                              640,000

Aug.  1   Interest expense (1% x 640,000)                                                  6,400
               Note payable – bank                                                           413,600
                       Accounts receivable – assigned                                                              420,000

Sept.  1   Cash                                                                                       91,336
                Interest expense                                                                       2,264
                Note payable – bank                                                          226,400
                        Accounts receivable – assigned                                                             320,000

  

                Accounts receivable                                                           60,000
                        Accounts receivable – assigned                                                             60,000

                Bank loan                                                                                                       640,000
                August 1 payment                                                                                          413,600
                Balance                                                                                                          226,400 

               Collections by bank                                                                                        320,000
                Less: Payment of loan                                                         226,400
                         Interest (1% x 226,400)                                                     2,264               228,664
                Remittance from bank                                                                                     91,336

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