Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.8 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 8% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end. Required: a. Prepare the journal entries on October 1, 2012, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. b. Record the adjustments on December 31, 2012, for (a) Precision Castparts and (b) Midwest Bank. c. Prepare the journal entries on September 30, 2013, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.8 million cash on ...” 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
Which of the following types of costs is a product cost for absorption costing but a period cost for variable costing? a. direct labor b. total administrative expense c. fixed factory overhead per unit sold d. variable selling expense e.
Answers (1)
You have $12,500 to invest and you are considering investing in fund x. the fund charges a front-end load of 3 percent and an annual expense fee of 2.25 percent of the ending asset value over the year.
Answers (1)
Which of the following is an example of a sales promotion? A. Pay per click Internet advertising B. A coupon that expires in one month C. A company newsletter D. A permanent price reduction
Answers (1)
The company marketing vice president believes a new sales promotion that costs $ 140 comma 000 would increase sales to 200 comma 000 goggles. Should the company go ahead with the promotion? Give your reason.
Answers (1)
A process costing system is employed in those situations where: many different products, jobs, or batches of production are being produced each period.
Answers (1)
New Questions in Business
For a business credit card, most companies that issue credit, including Visa and Mastercard, specifically state their liability policies: Only cover the first $50.
Answers (1)
In the resource-based view of the firm, examples of tangible resources include: Select one: a. outstanding customer service, innovativeness of products, and reputation b.
Answers (1)
Off-Line Co. has 9,000 units in beginning finished goods. The sales budget shows expected sales to be 36,000 units. If the production budget shows that 42,000 units are required for production, what was the desired ending finished goods?
Answers (1)
g resh bought 1,000 shares of Ibis Corporation stock for $5,600 on January 15, 2017. On December 31, 2019, she sold all 1,000 shares of her Ibis stock for $4,800.
Answers (1)
The last stage of the new-product development process is
Answers (1)