Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on march 1, 2018 the santa teresa glass company bo

On March 1, 2018 the Santa Teresa Glass Company borrowed $600,000 from Finance Bank and...

80.2K

Verified Solution

Question

Accounting

On March 1, 2018 the Santa Teresa Glass Company borrowed $600,000 from Finance Bank and signed a promissory note. Interest at 8% is paid monthly. The company assigned $800,000 of its receivable as collateral for the loan. Fiance Bank charges a finance fee equal to 2.0% of the account receivable assigned. On March 31, 2018 Santa Teresa Glass Company collected $500,000.

1. Prepare the general journal entry required on March 1, 2018.

2. Prepare the entries at March 31, 2018 to reflect money collected and remitted to Finance Bank.

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

Programming
1.2K views

1- Definition and introduction of its layer 2- Explain the network functions 3- Explain the data transfer...

Basic Math
1.2K views

The following table shows ceremonial ranking and type of pottery sherd for a random sample of...

Advance Math
1.2K views

Solve the equation below for y(t): y''+2y'-3y=8u(t-3): y(0) = 0; y'(0)=0

Basic Math
1.2K views

20 Kim works as a salesperson for a photo studio To find her earnings for...

Statistics
1.2K views

5 Suppose X is a continuous random variable with probability density function f x Determine...

Calculus
1.2K views

Use a triple integral to find the volume of the solid bounded below by the...

Accounting
1.2K views

easy incorporated uses the fifo method in its process costing system. the following data concern...

Accounting
1.2K views

The time to remove a square insert and index it to another new corner is...

Accounting
1.2K views

A company uses a traditional costing overhead method with one rate for the company. They...

Accounting
1.2K views

A revocation of an offer is ordinarily effective after the offer has been accepted. ...

Accounting
1.2K views

Exercise 3 ALBELLI Ltd received a special one-time order for photo material. ALBELLI has excess...

Accounting
1.2K views

Mojo Industries tracks the number of units purchased and sold throughout each accounting period but...