Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. henry acrobats lent $44,628 to donaldson, inc., ac

Henry Acrobats lent $44,628 to Donaldson, Inc., accepting Donaldsons 2-years, $54,000, zero-interest-bearing note. The implied...

80.2K

Verified Solution

Question

Accounting

Henry Acrobats lent $44,628 to Donaldson, Inc., accepting Donaldsons 2-years, $54,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare Henrys journal entries for the initial transaction, recognition of interest each year, and the collection of $54,000 at maturity. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit
1.

(To record the initial transations)
2.

(To record the recognition of interest in year one)
3.

(To recognize the interest in year 2)
4.

(To record the collection of the note)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

3 8 Determine the moment of the 1800 N force about a point C and...

Basic Math
1.2K views

A manufacturing firm has a monthly production of units modeled by?(?, ?) = 50?0.7?0.3 where x...

Psychology
1.2K views

Workshop 5 Background: In December 2017, 9-year old Jack and his mother (Harriet) were visiting their extended...

Advance Math
1.2K views

using the Laplace transform solve the IVP y'' +4y= 3sin(t) y(0) =1 , y'(0) = -...

General Management
1.2K views

To what extent have you built your own brand? Is this something that you have ever...

Physics
1.2K views

A fish is a little away below the surface of a lake If the critical...

Basic Math
1.2K views

What is the basic ratio of ounces ofpeanuts to ounces of raisins for amixture of...

Algebra
1.2K views

Solve the equation x 7 3x 4x 16 8

Algebra
1.2K views

Determine which of the given graphs is that of the function f x 5 x...

Accounting
1.2K views

, it cut off at direct materials price variance and...

Accounting
1.2K views

Top managers of Preston Industries predicted 2016 sales of 15,100 units of its product at...

Finance
1.2K views

You are considering a car loan with a stated APR of 5.74% based on monthly...