Scribd Logo
Upload

Welcome to Scribd!

  • 1K views

    Problem 1 Accrual of Interest Expense

    Uploaded by

    Jhanin Buenavista
    1) The document provides two accounting problems about accruing interest expense and interest revenue. 2) The first problem involves accruing interest expense on a loan and calculating amounts for the income statement and balance sheet. 3) The second problem involves accruing interest revenue on a certificate of deposit and calculating income recognized, cash collected, and interest receivable amounts over two years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Problem 1 Accrual of Interest Expense

    Uploaded by

    Jhanin Buenavista
    1K views1 page
    1) The document provides two accounting problems about accruing interest expense and interest revenue. 2) The first problem involves accruing interest expense on a loan and calculating amounts for the income statement and balance sheet. 3) The second problem involves accruing interest revenue on a certificate of deposit and calculating income recognized, cash collected, and interest receivable amounts over two years.

    Original Title

    Seatwork Adjustment

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1) The document provides two accounting problems about accruing interest expense and interest revenue. 2) The first problem involves accruing interest expense on a loan and calculating amounts for the income statement and balance sheet. 3) The second problem involves accruing interest revenue on a certificate of deposit and calculating income recognized, cash collected, and interest receivable amounts over two years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views1 page

    Problem 1 Accrual of Interest Expense

    Uploaded by

    Jhanin Buenavista
    1) The document provides two accounting problems about accruing interest expense and interest revenue. 2) The first problem involves accruing interest expense on a loan and calculating amounts for the income statement and balance sheet. 3) The second problem involves accruing interest revenue on a certificate of deposit and calculating income recognized, cash collected, and interest receivable amounts over two years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Basic Accounting Review

    Seatwork –adjustment

    Problem 1

    Accrual of Interest Expense

    Kristine June Uy Forwarders borrowed P600,000 from the bank on Sept. 1, 2019. The note carried an 8%
    annual rate of interest and was set to mature on Feb. 28, 2020. Interest and principal were paid in cash
    on the maturity date.

    Required:

    1. What was the amount of interest expense paid in cash in 2019?


    2. What was the amount of interest expense recognized on the 2019 income statement?
    3. What was the amount of total liabilities shown on the 2019 balance sheet?
    4. What was the total amount of cash that was paid to the bank on Feb. 28, 2020 for principal and
    interest?
    5. What was the amount of interest expense shown on the 2020 income statement?

    Problem 2

    Accrual of Interest Revenue

    Reynaldo San Mateo, an angel investor, decided to invest P1,200,000 excess cash in a certificate pf
    deposit on April 1, 2018. The certificate carried an 8% annual rate of interest and a 1-year term to
    maturity. Interest will be withdrawn monthly (disregard tax effects).

    Required:
    1. What amount of income will be recognized for the year ending December 31, 2018?
    2. What is the effect of the adjusting entry on the accounting equation?
    3. What amount of cash will be collected for interest revenue in 2018?
    4. What is the of interest receivable as of December 31, 2018?
    5. What amount of cash will be collected for interest revenue in 2019?
    6. What amount of interest revenue will recognized in 2019?
    7. What is the amount of interest receivable as of December 31, 2019?

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy