|On July 31, 2014, Amsterdam Company engaged Minsk ToolingCompany to construct a special-purpose piece of factory machinery.Construction was begun immediately and was completed on November 1,2014. To help finance construction, on July 31 Amsterdam issued a$660,000, 3-year, 12% note payable at Netherlands National Bank, onwhich interest is payable each July 31. $545,000 of the proceeds ofthe note was paid to Minsk on July 31. The remainder of theproceeds was temporarily invested in short-term marketablesecurities (trading securities) at 10% until November 1. OnNovember 1, Amsterdam made a final $115,000 payment to Minsk. Otherthan the note to Netherlands, Amsterdam|
The following transactions took place for Smart Solutions Inc.
You are watching: A 90 day note issued on april 10 matures on
a. July 1
Loaned $70,000 to an employee of the company and received back a one-year, 10 percent note.
b. Dec. 31 Accrued interest on the note.
c. July 1 Received interest on the note. (No interest has been recorded since December 31.)
d. July 1 Received principal on the note.
I want the question answered in the same format. fill in theboxes
for how it should be recorded each month.
what will be recorded in june
Exercise 5-13Expense Recognition
Sun Microsystems uses the accrual basis of accounting andrecognizes revenue at the time it sells goods or renders services.It applies U.S. GAAP and reports in U.S. dollars. Indicate theamount of expenses (if any) the firm recognizes during the monthsof June, July, and August in each of the following hypotheticaltransactions. The firm does the following:
a. Pays $180,000 on July 1 for one year”s renton a warehouse beginning on that date.
|June||Select$0$15,000$180,000Item 1||is recognized.|
|July||Select$0$15,000$180,000Item 2||is recognized.|
|August||Select$0$15,000$180,000Item 3||is recognized.|
b. Receives a utility bill on July 2 totaling$4,560 for services received during June. It pays the utility billduring July.
|June||Select$0$1,520$4,560Item 4||is recognized.|
|July||Select$0$1,520$4,560Item 5||is recognized.|
|August||Select$0$1,520$4,560Item 6||is recognized.|
c. Purchases office supplies on account costing$12,600 during July. It pays $5,500 for these purchases during Julyand the remainder during August. Office supplies on hand on July 1cost $2,400, on July 31 cost $9,200, and on August 31 cost$2,900.
|July||Select$5,800$6,300$9,200Item 8||is recognized.|
|August||Select$0$2,900$6,300Item 9||is recognized.|
d. Pays $7,200 on July 15 for property taxes onoffice facilities for the current calendar year.
|June||Select$0$600$7,200Item 10||is recognized.|
|July||Select$300$600$7,200Item 11||is recognized.|
|August||Select$600$1,200$7,200Item 12||is recognized.|
e. Pays $2,000 on July 15 as a deposit on acustom-made delivery van that the manufacturer will deliver onSeptember 30.
|June||Select$0$1,000$2,000Item 13||is recognized.|
|July||Select$0$1,000$2,000Item 14||is recognized.|
|August||Select$0$1,000$2,000Item 15||is recognized.|
f. Pays $4,500 on July 25 as an advance on theAugust salary of an employee.
|June||Select$0$1,500$4,500Item 16||is recognized.|
|July||Select$0$1,500$4,500Item 17||is recognized.|
|August||Select$0$1,500$4,500Item 18||is recognized.|
g. Pays $6,600 on July 25 for advertisementsthat appeared in computer journals during June.
|July||Select$0$3,300$6,600Item 20||is recognized.|
|August||Select$0$3,300$6,600Item 21||is recognized.|