Ask Question
BusinessBusiness
Today, 17:48

Taylor Bank lends Guarantee Company $92,811 on January 1. Guarantee Company signs a $92,811, 12%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is

+5
Answers (1)
  1. Today, 18:00
    0
    Dr Cash $92,811

    Cr Notes Payables $92,811

    (Being the proceeds and issuance of note

    Explanation:

    Annual rate = 12%

    Interest for 9 months will be:

    9/12 x 12% = 9%

    So disbursal is 9% x $92,811

    = $8,353

    Principal (borrowed money) is $92,811.

    The loan was disbursed on January 1. So it's only the proceeds from the loan which will be recorded on this date. Repayment will start at later date.

    Therefore, The entry made by Guarantee Company on January 1 will be:

    January 1

    Dr Cash $92,811

    Cr Notes Payables $92,811

    (Being the proceeds and issuance of note)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Taylor Bank lends Guarantee Company $92,811 on January 1. Guarantee Company signs a $92,811, 12%, nine-month note. The entry made by ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Waterway industries, has 4700 shares of 5%, $50 par value, cumulative preferred stock and 100000 shares of $1 par value common stock outstanding at december 31, 2018, and december 31, 2017.
Answers (1)
You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment, your company's assets are $100,000 plus the idea for your new product.
Answers (1)
Emir Company purchased equipment that cost $110,000 cash on January 1, 2015. The equipment had an expected useful life of six years and an estimated salvage value of $8,000.
Answers (1)
What process capability index value implies that the process exceeds minimal capability?
Answers (1)
Wayco Industrial Supply has a pretax cost of debt of 8.3 percent, a cost of equity of 14.7 percent, and a cost of preferred stock of 8.9 percent. The firm has 165,000 shares of common stock outstanding at a market price of $33 a share.
Answers (1)
New Questions in Business
An airline company is interested in the opinions of their frequent flyer customers about their proposed new routes. Specifically, they want to know what proportion of them plan to use one of their new hubs in the next 10 months.
Answers (1)
Taylor Bank lends Guarantee Company $92,811 on January 1. Guarantee Company signs a $92,811, 12%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is
Answers (1)
Why is it important to know the interest rate on your credit card? a) The higher the interest rate, the more money you will be paying back b) The higher the interest rate, the less money you will be paying back c) The lower the interest rate, the
Answers (2)
It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only all the firms being compared have the same proportion of fixed assets to total assets. a) trueb) false
Answers (1)
Which of the following actions differentiates an entrepreneur from other small business owners?
Answers (1)
Home » Business » Taylor Bank lends Guarantee Company $92,811 on January 1. Guarantee Company signs a $92,811, 12%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is
Sign Up Forgot Password?