All Related Questions of Promissory Note

Q: On July 1, 2014, Agincourt Inc. made two sales

On July 1, 2014, Agincourt Inc. made two sales. 1. It sold land having a fair value of $700,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,101,460. The...

Q: On January 1, 2014, Ellen Greene Company makes the two

On January 1, 2014, Ellen Greene Company makes the two following acquisitions. 1. Purchases land having a fair value of $200,000 by issuing a 5-year, zero-interest-bearing promissory note in the fa...

Q: On September 1, 2014, Myo Inc. sold goods to

On September 1, 2014, Myo Inc. sold goods to Khin Corporation, a new customer. Prior to shipment of the goods, Myo's credit and collections department conducted a procedural credit check and determine...

Q: On July 1, 2014, Agincourt Inc. made two sales

On July 1, 2014, Agincourt Inc. made two sales: 1. It sold excess land in exchange for a four-year, non-interest-bearing promissory note in the face amount of $1,101,460. The land's carrying value is...

Q: Blanton Plastics, a household plastic product manufacturer, borrowed $14

Blanton Plastics, a household plastic product manufacturer, borrowed $14 million cash on October 1, 2018, to provide working capital for year-end production. Blanton issued a four-month, 12% promissor...

Q: Although Hank is retired, he is an excellent handyman and often

Although Hank is retired, he is an excellent handyman and often works part-time on small projects for neighbors and friends. Last week his neighbor, Mike, offered to pay Hank $500 for minor repairs to...

Q: Timo is the sole owner of Jazz Inc., an S corporation

Timo is the sole owner of Jazz Inc., an S corporation. On October 31 2016, Timo executed an unsecured demand promissory note of $15,000, and he transferred the note to Jazz (Jazz could require Timo to...

Q: Follow the instructions preceding the case in problem 10.60.

Follow the instructions preceding the case in problem 10.60. Write the audit approach section like the cases in the chapter. In Plane View Whiz Corporation owned 160,000 shares of Wing Company stock,...

Q: Thefollowing selected events were experienced by either Fact Finders, Inc.,

Thefollowing selected events were experienced by either Fact Finders, Inc., a corporation, or Peter Flip,the major stockholder. State whether each event (1) Increased, (2) Decreased, or (3) Had no eff...

Q: Thefollowing selected events were experienced by either Simply Sensible, Inc.,

Thefollowing selected events were experienced by either Simply Sensible, Inc., a corporation, or BillGriggs, the major stockholder. State whether each event (1) Increased, (2) Decreased, or (3) Had no...

Q: On January 1, 2013, McLean Company makes the two following

On January 1, 2013, McLean Company makes the two following acquisitions. 1. Purchases land having a fair value of $300,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount...

Q: On January 1, 2013, McLean Company makes the two following

On January 1, 2013, McLean Company makes the two following acquisitions. 1. Purchases land having a fair value of $300,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount...

Q: Duncan Properties, Inc. agrees to buy a car from Shifty

Duncan Properties, Inc. agrees to buy a car from Shifty for $25,000. The company issues a promissory note in payment. The car that Duncan bought is defective. If Shifty still has the note, does Duncan...

Q: Kay signed a promissory note for $220,000 that was

Kay signed a promissory note for $220,000 that was payable to Investments, Inc. The company then indorsed the note over to its lawyers to pay past and future legal fees. Were the lawyers holders in du...

Q: Teri and Jerry entered into a contract with a real estate developer

Teri and Jerry entered into a contract with a real estate developer that provided he would build the house of their dreams on a lot that he owned. In payment for the property and the house, T&J signed...

Q: On June 30, John signed a demand promissory note for $

On June 30, John signed a demand promissory note for $2,000 to the Camelot Country Club. The note stated that it was being given in payment for a membership in the country club, but in fact, the club...

Q: Kendall raised hogs. The Grain Company would provide him with hogs

Kendall raised hogs. The Grain Company would provide him with hogs and grain and, in return, he would sign a promissory note in an amount equal to the value of these items. Once the pigs were grown,...

Q: Melco, Inc., issued a promissory note for $12,

Melco, Inc., issued a promissory note for $12,000, payable to the order of Marjorie. On the back of the note, Charles had signed the following statement: “For and in consideration of funds advanced he...

Q: Leonard, an attorney, was negligent in his representation of Anthony

Leonard, an attorney, was negligent in his representation of Anthony. In settlement of Anthony’s claim against him, Leonard signed a promissory note for $10,400 on behalf of his law firm, an LLC. When...

Q: Action Powersports, Inc., a corporation, sells and services personal

Action Powersports, Inc., a corporation, sells and services personal watercraft. Thebusiness experienced the following events. State whether each event (a) increased,(b) decreased, or (c) had no effec...

Q: George S. Avery signed a letter regarding the unpaid balance on

George S. Avery signed a letter regarding the unpaid balance on a $20,000 promissory note owed to Jim Whitworth in the form of a letter addressed to Whitworth stating: “ This is your note for $45,000....

Q: Lloyd and Mario Spaulding entered into a contract to purchase property from

Lloyd and Mario Spaulding entered into a contract to purchase property from Richard and Robert Krajcir. The two Spaulding brothers signed a promissory note to the Krajcir brothers with the following l...

Q: Master Homecraft Co. received a promissory note with a stated face

Master Homecraft Co. received a promissory note with a stated face value from Sally and Tom Zimmerman. The note was payment for remodeling their home and contained unused blanks for installment paymen...

Q: On January 27, 1982, Joe Walker purchased a wheel

On January 27, 1982, Joe Walker purchased a wheel- loader machine from Thompson & Green Machinery Co. (T&G). Walker signed a promissory note for $37,886.30 on behalf of “ Music City Sawmill, Inc., b...

Q: Aldrich and Co. sold goods to Donovan on credit. The

Aldrich and Co. sold goods to Donovan on credit. The amount owed grew steadily, and finally Aldrich refused to sell any more to Donovan unless Donovan signed a promissory note for the amount due. Dono...

Q: Abby Novel signed a note with the following on it: “

Abby Novel signed a note with the following on it: “ Glen Gallwitz 1-8-2002 loaned me $5,000 at 6% interest a total of $10,000.00. ” The note did not contain a payment schedule or a time for repayment...

Q: On October 22, 2001, Benjamin Ritchie executed a promissory note

On October 22, 2001, Benjamin Ritchie executed a promissory note and mortgage in consideration for a $47,000 loan from WaMu. The mortgage covered both real estate located at 1790 Mount Mariah Road, Ca...

Q: Halleck executed a promissory note payable to the order of Leopold.

Halleck executed a promissory note payable to the order of Leopold. Halleck did not pay the note when due, and Leopold brought suit on the note, producing it in court. Halleck admitted that he had sig...

Q: John plans to transfer the assets and liabilities of his business to

John plans to transfer the assets and liabilities of his business to Newco in exchange for all of Newco’s stock. The assets have a $250,000 basis and an $800,000 FMV. John also plans to transfer $475,...

Q: Robert Durbin, a student, borrowed funds from a bank for

Robert Durbin, a student, borrowed funds from a bank for his education and signed a promissory note for their repayment. The bank loaned the funds under a federal program designed to assist students a...

Q: Peter Gowin was an employee of a granite countertop business owned by

Peter Gowin was an employee of a granite countertop business owned by Joann Stathis. In November 2016, Gowin signed a promissory note agreeing to pay $12,500 in order to become a co-owner of the busin...

Q: How may the maturity date of a promissory note be stated?

How may the maturity date of a promissory note be stated?

Q: Presented below are three receivables transactions. Indicate whether these receivables are

Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet. (a) Advanced $10,...

Q: On January 1, 2017, Harvee Company had Accounts Receivable of

On January 1, 2017, Harvee Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $3,700. Harvee Company prepares fi nancial statements annually. During the year, the follow...

Q: On January 10, 2017, Masterson Co. sold merchandise on

On January 10, 2017, Masterson Co. sold merchandise on account to Tompkins for $8,000, terms n/30. On February 9, Tompkins gave Masterson Co. a 7% promissory note in settlement of this account. Prepar...

Q: On July 1, 2012, Rentoul Inc. made two sales

On July 1, 2012, Rentoul Inc. made two sales. 1. It sold land having a fair value of $900,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,416,163. The land...

Q: On May 11, 2009, JPMorgan Chase Bank (Chase)

On May 11, 2009, JPMorgan Chase Bank (Chase) filed a foreclosure action against Robert McLean. The complaint alleged that Chase was entitled to enforce the mortgage and promissory note on which McLean...

Q: Montoro petitioned himself into voluntary bankruptcy. There were three major claims

Montoro petitioned himself into voluntary bankruptcy. There were three major claims against his estate. One was made by Carlton, a friend who held Montoro’s negotiable promissory note for $2,500. Anot...

Q: Blushing Brides, LLC, a publisher of wedding-planning magazines

Blushing Brides, LLC, a publisher of wedding-planning magazines in Columbus, Ohio, opened an account with Gray Printing Co. in July 2000. On behalf of Blushing Brides, Louis Zacks, the firm’s member-m...

Q: Nick Sabol, doing business in the recording industry as Sound Farm

Nick Sabol, doing business in the recording industry as Sound Farm Productions, applied to Morton Community Bank for a $58,000 loan to expand his business. Besides the loan application, Sabol signed a...

Q: The following selected events were experienced by either Solution Seekers, Inc

The following selected events were experienced by either Solution Seekers, Inc., a corporation, or Paul Flynn, the major stockholder. State whether each event (1) increased, (2) decreased, or (3) had...

Q: The following selected events were experienced by either Simple Solutions, Inc

The following selected events were experienced by either Simple Solutions, Inc., a corporation, or Bob Gallagher, the major stockholder. State whether each event (1) increased, (2) decreased, or (3) h...

Q: On January 1, 2014, Oswalt Company had Accounts Receivable of

On January 1, 2014, Oswalt Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $3,700. Oswalt Company prepares financial statements annually. During the year, the followi...

Q: On January 10, 2014, Tolleson Co. sold merchandise on

On January 10, 2014, Tolleson Co. sold merchandise on account to Simmons for $8,000, terms n/30. On February 9, Simmons gave Tolleson Co. a 7% promissory note in settlement of this account. Prepare th...

Q: Wachovia, a bank, made a loan in 2003 to McNamee

Wachovia, a bank, made a loan in 2003 to McNamee for $150,000, and he signed a promissory note for the loan. At some point, Wachovia misplaced, lost, or destroyed the original note. The note matured i...

Q: McLaughlin borrowed $10,000 from Adler, who, apprehensive

McLaughlin borrowed $10,000 from Adler, who, apprehensive about McLaughlin’s ability to pay, demanded security. McLaughlin indorsed and delivered to Adler a negotiable promissory note executed by Topp...

Q: Adams, by fraudulent representations, induced Barton to purchase one hundred

Adams, by fraudulent representations, induced Barton to purchase one hundred shares of the capital stock of the Evermore Oil Company. The shares were worthless. Barton executed and delivered to Adams...

Q: Sandra and Thomas McGuire entered into a purchase-and-sale

Sandra and Thomas McGuire entered into a purchase-and-sale agreement for “Becca’s Boutique” with Pascal and Rebecca Tursi. The agreement provided that the McGuires would buy the store for $75,000, wit...

Q: Alan purchased shoes from Barbara on open account. Barbara sent Alan

Alan purchased shoes from Barbara on open account. Barbara sent Alan a bill for $10,000. Alan wrote back that 200 pairs of the shoes were defective and offered to pay $6,000 and give Barbara his promi...

Q: Frank Berryessa stole funds from his employer, the Eccles Hotel Company

Frank Berryessa stole funds from his employer, the Eccles Hotel Company. His father, W. S. Berryessa (Berryessa), learned of his son's trouble and, thinking the amount involved was about $2,000, gave...

Q: The Society National Bank (Society) agreed in a promissory note

The Society National Bank (Society) agreed in a promissory note to lend U.S.A. Diversified Products, Inc. (USAD) up to $2 million in the form of an operating line of credit upon which USAD could make...

Q: Explain whether each of the following transactions results in a valid negotiation

Explain whether each of the following transactions results in a valid negotiation: (a) Arnold gives a negotiable check payable to bearer to Betsy without indorsing it. (b) Golden indorses a negotiable...

Q: Packer owned and operated a fruit cannery in Southton, Illinois.

Packer owned and operated a fruit cannery in Southton, Illinois. He stored a substantial amount of finished canned goods in a warehouse in East St. Louis, Illinois, owned and operated by Alden, in ord...

Q: Fox, Dodge, and Gilbey agreed to become limited partners in

Fox, Dodge, and Gilbey agreed to become limited partners in Palatine Ventures, a limited partnership. In a signed writing each agreed to contribute $20,000. Fox’s contribution consisted entirely of ca...

Q: For the balance due on the purchase of a tractor Henry Brown

For the balance due on the purchase of a tractor Henry Brown executed and delivered to Jane Jones his promissory note containing the following language: January 1, 2015, I promise to pay to the order...

Q: John P. Butler Accountancy Corporation agreed to audit the financial statements

John P. Butler Accountancy Corporation agreed to audit the financial statements of Westside Mortgage, Inc., a mortgage company that arranged financing for real property, for the year ending December 3...

Q: In January, Roger Burke loaned his favorite nephew, Jimmy White

In January, Roger Burke loaned his favorite nephew, Jimmy White, his valuable Picasso painting. Knowing that Jimmy would celebrate his twenty-first birthday on May 15, Burke sent a letter to Jimmy on...

Q: Holly Hill Acres, Ltd., executed and delivered a promissory note

Holly Hill Acres, Ltd., executed and delivered a promissory note and a purchase money mortgage to Rogers and Blythe. The note provided that it was secured by a mortgage on certain real estate and that...

Q: Simon Sharpe executed and delivered to Ben Bates a negotiable promissory note

Simon Sharpe executed and delivered to Ben Bates a negotiable promissory note payable to the order of Ben Bates for $500. Bates indorsed the note, “Pay to Carl Cady upon his satisfactorily repairing t...

Q: Marcus issues a negotiable promissory note payable to the order of Parish

Marcus issues a negotiable promissory note payable to the order of Parish for the amount of $3,000. Parish raises the amount to $13,000 and negotiates it to Hilda for $12,000. (a) If Hilda is a holder...

Q: On December 2, 2015, Miles executed and delivered to Proctor

On December 2, 2015, Miles executed and delivered to Proctor a negotiable promissory note for $1,000, payable to Proctor or order due March 2, 2016, with interest at 14 percent from maturity, in parti...

Q: Laura and Gary have formed a limited partnership, with Gary agreeing

Laura and Gary have formed a limited partnership, with Gary agreeing to be the general partner. This partnership has purchased supplies from Sam. Sam has received a promissory note signed on behalf of...

Q: Presented below are three receivables transactions. Indicate whether these receivables are

Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet. (a) Advanced $10,...

Q: Prepare the journal entry to record each of the following independent transactions

Prepare the journal entry to record each of the following independent transactions. (Use the number of the transaction in lieu of a date for identification purposes.) 1. Services provided on account o...

Q: Following is a list of transactions entered into during the first month

Following is a list of transactions entered into during the first month of operations of Gardener Corporation, a new landscape service. Prepare in journal form the entry to record each transaction....

Q: On June 1, Campbell Corporation purchased ten acres of land in

On June 1, Campbell Corporation purchased ten acres of land in exchange for a promissory note in the amount of $50,000. Using the formats shown in Example 3-6, prepare the journal entry to record this...

Q: Castle Consulting Agency began business in February. The transactions entered into

Castle Consulting Agency began business in February. The transactions entered into by Castle during its first month of operations are as follows: a. Acquired articles of incorporation from the state...

Q: Refer to the transactions for Castle Consulting Agency in Problem 3-

Refer to the transactions for Castle Consulting Agency in Problem 3-11A. Problem 3-11A: Castle Consulting Agency began business in February. The transactions entered into by Castle during its first...

Q: The following account balances are available for Tenfour Trucking Company on January

The following account balances are available for Tenfour Trucking Company on January 31, 2017: Cash …………………………………………………………………………….. $ 27,340 Accounts Receivable ………………………………………………………… 41,500 Prepaid...

Q: Tuscon Inc. sold merchandise for $6,000 to P

Tuscon Inc. sold merchandise for $6,000 to P. Paxton on July 31, 2017, with payment due in 30 days. Subsequent to this, Paxton experienced cash-flow problems and was unable to pay its debt. On Decembe...

Q: The following account balances are taken from the records of Laugherty Inc

The following account balances are taken from the records of Laugherty Inc. at December 31, 2017. The Supplies account represents the cost of supplies on hand at the beginning of the year plus all pur...

Q: Dynamic Services Inc. was organized on March 1 by two former

Dynamic Services Inc. was organized on March 1 by two former college roommates. The corporation will provide computer tax services to small businesses. The following transactions occurred during the f...

Q: Refer to the transactions for Atkins Advertising Agency in Problem 3-

Refer to the transactions for Atkins Advertising Agency in Problem 3-11. Problem 3-11: Atkins Advertising Agency began business on January 2. The transactions entered into by Atkins during its first...

Q: Refer to the transactions for Blue Jay Delivery Service in Problem 3

Refer to the transactions for Blue Jay Delivery Service in Problem 3-6. Problem 3-6: Blue Jay Delivery Service is incorporated on January 2 and enters into the following transactions during its firs...

Q: Refer to the transactions for Neveranerror Inc. in Problem 3-

Refer to the transactions for Neveranerror Inc. in Problem 3-7. Problem 3-7: Neveranerror Inc. was organized on June 2 by a group of accountants to provide accounting and tax services to small busin...

Q: Moonlight Bay Inn is incorporated on January 2, 2017, by

Moonlight Bay Inn is incorporated on January 2, 2017, by its three owners, each of whom contributes $20,000 in cash in exchange for shares of stock in the business. In addition to the sale of stock, t...

Q: Lenox Corp. sold merchandise for $5,000 to M

Lenox Corp. sold merchandise for $5,000 to M. Baxter on May 15, 2017, with payment due in 30 days. Subsequent to this, Baxter experienced cash-flow problems and was unable to pay its debt. On August 1...

Q: Blue Jay Delivery Service is incorporated on January 2 and enters into

Blue Jay Delivery Service is incorporated on January 2 and enters into the following transactions during its first month of operations: Required: 1. Prepare a table to summarize the preceding transa...

Q: Neveranerror Inc. was organized on June 2 by a group of

Neveranerror Inc. was organized on June 2 by a group of accountants to provide accounting and tax services to small businesses. The following transactions occurred during the first month of business:...

Q: Four brothers organized Beverly Entertainment Enterprises on October 1. The following

Four brothers organized Beverly Entertainment Enterprises on October 1. The following transactions occurred during the first month of operations: Required: 1. Prepare a table to summarize the preced...

Q: Refer to the table for Beverly Entertainment Enterprises in part (1

Refer to the table for Beverly Entertainment Enterprises in part (1) of Problem 3-9. Problem 3-9: Four brothers organized Beverly Entertainment Enterprises on October 1. The following transactions o...

Q: Atkins Advertising Agency began business on January 2. The transactions entered

Atkins Advertising Agency began business on January 2. The transactions entered into by Atkins during its first month of operations are as follows: a. Acquired its articles of incorporation from the...

Q: The following account balances are taken from the records of Chauncey Company

The following account balances are taken from the records of Chauncey Company at December 31, 2017. The Prepaid Insurance account represents the cost of a three-year policy purchased on August 1, 2017...

Q: Expert Consulting Services Inc. was organized on March 1 by two

Expert Consulting Services Inc. was organized on March 1 by two former college roommates. The corporation provides computer consulting services to small businesses. The following transactions occurred...

Q: Wisconsin Corporation was organized at the beginning of the year with the

Wisconsin Corporation was organized at the beginning of the year with the investment of $400,000 in cash by its stockholders. The company immediately purchased a manufacturing facility for $300,000, p...

Q: Colorado Corporation was organized at the beginning of the year, with

Colorado Corporation was organized at the beginning of the year, with the investment of $250,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying...

Q: Prepare a table to summarize the following transactions as they affect the

Prepare a table to summarize the following transactions as they affect the accounting equation. Use the format in Exhibit 3-1. Exhibit 3-1: 1. Services provided on account of $1,530 2. Purchases of...

Q: Following are Butler Realty Corporation’s accounts, identified by number. The

Following are Butler Realty Corporation’s accounts, identified by number. The company has been in the real estate business for ten years and prepares financial statements monthly. Fo...

Q: Presented next are the balance sheet accounts of Bergen Corporation as of

Presented next are the balance sheet accounts of Bergen Corporation as of December 31, 2017 and 2016. Additional Information: On January 2, 2017, Bergen sold all of its marketable investment securi...

Q: The following income statement, statement of cash flows, and additional

The following income statement, statement of cash flows, and additional information are available for PEK Company: Additional information: a. Beginning inventory and purchases for the one product t...

Q: On July 1, 2017, Jo’s Flower Shop borrowed $25

On July 1, 2017, Jo’s Flower Shop borrowed $25,000 from the bank. Jo’s signed a ten-month, 8% promissory note for the entire amount. Jo’s uses a calendar year-end. Required: 1. Identify and analyze t...

Q: Use the following legend to indicate how each transaction would be reported

Use the following legend to indicate how each transaction would be reported on the statement of cash flows. (Assume that the company uses the direct method in the Operating Activities section.)

Q: A firm recorded various transactions with the journal entries shown below.

A firm recorded various transactions with the journal entries shown below. Using the notation O/S (overstated), U/S (understated), or No (no effect), indicate the effects on assets, liabilities, and s...

Q: Exhibit 6.12 in Chapter 6 provides a simplified statement of

Exhibit 6.12 in Chapter 6 provides a simplified statement of cash flows. For each of the transactions that follow, indicate the number(s) of the line(s) in Exhibit 6.12 affected by the transaction and...

Q: TARVON Inc. acquired $50,000 cash by issuing a

TARVON Inc. acquired $50,000 cash by issuing a promissory note to the National Bank on May 1, Year 1. TARVON issued a promissory note with a one-year term and a 6 percent annual interest rate. Requir...

Q: Black Inc. acquired $10,000 cash by issuing a

Black Inc. acquired $10,000 cash by issuing a promissory note to the National Bank on November 1, Year 1. The note stipulated a one-year term and a 9 percent annual interest rate. Required: Prepare t...

Q: Select the correct answer. /

Select the correct answer.

Q: On July 1, 2017, Agincourt Inc. made two sales

On July 1, 2017, Agincourt Inc. made two sales. 1. It sold land having a fair value of $700,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,101,460. The la...

Q: Indicate whether each of the following statements is true or false.

Indicate whether each of the following statements is true or false. 16. The law presumes that commercial paper was issued for value. 17. A subsequent holder of commercial paper can have no greater rig...

Q: Grove Hotel hired Fortas, an electrical contractor, and paid him

Grove Hotel hired Fortas, an electrical contractor, and paid him with a promissory note for $3,400. The note stated that it was “with interest at prevailing bank rates.” Did the stipulation about inte...

Q: Poulakis sold a computer using fraudulent means to Welson, who paid

Poulakis sold a computer using fraudulent means to Welson, who paid for the machine with a promissory note for $1,200. When Welson discovered the fraud, she refused to honor the note when it was prese...

Q: Corbin was named as executor in his father’s will. While going

Corbin was named as executor in his father’s will. While going through his late father’s papers, he discovered a promissory note made by Fulsom in the amount of $10,000 that reflected a personal loan...

Q: Bolena sold some valuable jewelry to McGovern, whom she had never

Bolena sold some valuable jewelry to McGovern, whom she had never met before. She was concerned about whether McGovern’s check was good and whether there were sufficient funds on deposit in McGovern’s...

Q: On January 1, 2017, Ellen Carter Company makes the two

On January 1, 2017, Ellen Carter Company makes the two following acquisitions. 1. Purchases land having a fair value of $200,000 by issuing a 5-year, zero-interest-bearing promissory note in the face...

Q: On October 10, 2017, Executor Co. entered into a

On October 10, 2017, Executor Co. entered into a contract with Belisle Inc. to transfer Executor’s specialty products (sales value of $10,000, cost of $6,500) on December 15, 2017. Belisle agrees to m...

Q: 1. Kay signed a promissory note for $220,000

1. Kay signed a promissory note for $220,000 that was payable to Investments, Inc. The company then indorsed the note over to its lawyers to pay past and future legal fees. Were the lawyers holders in...

Q: Kendall raised hogs. The Grain Company would provide him with hogs

Kendall raised hogs. The Grain Company would provide him with hogs and grain and, in return, he would sign a promissory note in an amount equal to the value of these items. Once the pigs were grown, K...

Q: Leonard, an attorney, was negligent in his representation of Anthony

Leonard, an attorney, was negligent in his representation of Anthony. In settlement of Anthony’s claim against him, Leonard signed a promissory note for $10,400 on behalf of his law firm, an LLC. When...

Q: On June 30, John signed a demand promissory note for $

On June 30, John signed a demand promissory note for $2,000 to the Camelot Country Club. The note stated that it was being given in payment for a membership in the country club, but in fact, the club...

Q: William H. Bailey, MD, executed a note payable to

William H. Bailey, MD, executed a note payable to California Dreamstreet, a joint venture that solicited investments for a cattle breeding operation. Bailey’s promissory note read, “Dr. William H. Bai...

Q: Holly Hill Acres, Ltd. (Holly Hill), purchased land

Holly Hill Acres, Ltd. (Holly Hill), purchased land from Rogers and Blythe. As part of its consideration, Holly Hill gave Rogers and Blythe a promissory note and mortgage. The note read, in part, “Thi...

Q: Sally Fitch obtained a loan from Buffalo Federal Savings and Loan Association

Sally Fitch obtained a loan from Buffalo Federal Savings and Loan Association (Buffalo Federal). She signed a promissory note for $130,000 with interest at 17 percent. The loan was secured with a real...

Q: The Grand Island Production Credit Association (Grand Island) is a

The Grand Island Production Credit Association (Grand Island) is a federally chartered credit union. Carl M. and Beulah C. Humphrey, husband and wife, entered into a loan arrangement with Grand Island...

Q: The following selected events were experienced by either Knox Eldercare Services,

The following selected events were experienced by either Knox Eldercare Services, Inc., a corporation, or Steve Knox, the major stockholder. State whether each event 1. increased, 2. decreased, or...

Q: The following selected events were experienced by either Bishop Industries, Inc

The following selected events were experienced by either Bishop Industries, Inc., a corporation, or Kate Bishop, the major stockholder. State whether each event 1. increased, 2. decreased, or 3. ha...

Q: Presented below are three receivables transactions. Indicate whether these receivables are

Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet. a. Sold merchandi...

Q: On January 10, 2020, Perez Co. sold merchandise on

On January 10, 2020, Perez Co. sold merchandise on account to Robertsen Co. for $15,600, n/30. On February 9, Robertsen Co. gave Perez Co. a 10% promissory note in settlement of this account. Prepare...

Q: Marie, owner of the Consumer Goods Company, employs Rachel as

Marie, owner of the Consumer Goods Company, employs Rachel as an administrative assistant. In Marie’s absence, and without authority, Rachel represents herself as Marie and signs a promissory note in...

Q: Maude Rosenbaum wanted to post bail to get out of prison.

Maude Rosenbaum wanted to post bail to get out of prison. Harvey Bowen agreed to post bail of $7,500 in return for a $7,500 promissory note signed by Rosenbaum and secured by her house. Bowen was not...

Q: File this case under: What parents will do for their children

File this case under: What parents will do for their children (whether or not they should). Wachovia Bank loaned Daniel Manley $420,000 and, in return, he gave the bank a promissory note in that amoun...

Q: On December 5, Charles H. Logging (CHL) borrowed

On December 5, Charles H. Logging (CHL) borrowed $225,000 from Citizens Bank to buy a skidder, and signed a promissory note to repay the money along with a UCC-1 listing the skidder as collateral. The...

Q: On September 1, 2017, Myo Inc. sold goods to

On September 1, 2017, Myo Inc. sold goods to Khin Corporation, a new customer. Before shipping the goods, Myo’s credit and collections department conducted a procedural credit check and determined tha...

Q: On July 1, 2017, Agincourt Inc. made two sales

On July 1, 2017, Agincourt Inc. made two sales: 1. It sold excess land in exchange for a four-year, non–interest-bearing promissory note in the face amount of $1,101,460. The land’s carrying value is...

Q: In November 2000, Monay Jones signed a promissory note in favor

In November 2000, Monay Jones signed a promissory note in favor of a mortgage company in the amount of $261,250. Jones used the deed to her home in Denver, Colorado, as collateral. Fifth Third Bank so...

Q: Germanie Fequiere executed and delivered a promissory note in the principal amount

Germanie Fequiere executed and delivered a promissory note in the principal amount of $240,000 to BNC Mortgage. As security for the note, Fequiere executed and delivered a mortgage on real property. B...

Q: Celine issues a ninety-day negotiable promissory note payable to the

Celine issues a ninety-day negotiable promissory note payable to the order of Hayden. The amount of the note is left blank, pending a determination of the amount that Hayden will need to purchase a us...

Q: Caroline McAfee loaned $400,000 to Carter Oaks Crossing.

Caroline McAfee loaned $400,000 to Carter Oaks Crossing. Joseph Harman, president of Carter Oaks Crossing, signed a promissory note providing that the company would repay the amount with interest in i...

Q: Blushing Brides, LLC, a publisher of wedding planning magazines in

Blushing Brides, LLC, a publisher of wedding planning magazines in Columbus, Ohio, opened an account with Gray Printing Co. in July 2000. On behalf of Blushing Brides, Louis Zacks, the firm’s member-m...

Q: Vivian, owner of Wonder Goods Company, employs Xena as an

Vivian, owner of Wonder Goods Company, employs Xena as an administrative assistant. In Vivian’s absence, and without authority, Xena represents herself as Vivian and signs a promissory note in Vivian’...

Q: This appeal concerns real property owned by the defendant [Success,

This appeal concerns real property owned by the defendant [Success, Inc.] and known as 520 Success Avenue property. That property is partially situated in Stratford and partially situated in Bridgepor...

Q: Plaintiff, Gregory Mills, and defendant, Robert Chauvin, are

Plaintiff, Gregory Mills, and defendant, Robert Chauvin, are two experienced attorneys who shared both a friendship and a professional/business relationship. Those longstanding relationships deteriora...

Q: Envision Printing, LLC sued Bernie Evans in a Georgia state court

Envision Printing, LLC sued Bernie Evans in a Georgia state court, alleging that he defaulted on a promissory note. Evans moved for summary judgment, asserting that he was not personally responsible f...

Q: Miracle Faith World Outreach, Inc., a religious corporation, was

Miracle Faith World Outreach, Inc., a religious corporation, was founded by Bobby and Christine Davis in 1964. The Miracle Faith World Outreach Church started with prayer meetings in Christine’s mothe...

Q: Jose and Jessica Nunez, and Felipa Delrio, executed a note

Jose and Jessica Nunez, and Felipa Delrio, executed a note to America’s Wholesale Lender Countrywide Home Loans, Inc. together with a mortgage to buy property in Hallandale, Florida. The note and mort...

Q: Waldo makes out a negotiable promissory note payable to the order of

Waldo makes out a negotiable promissory note payable to the order of Grace. Grace indorses the note by writing on it “Without recourse, Grace” and transfers the note for value to Adam. Adam, in need o...

Q: Robert Durbin, a student, borrowed funds from a bank for

Robert Durbin, a student, borrowed funds from a bank for his education and signed a promissory note for their repayment. The bank lent the funds under a federal program designed to assist students at...

Q: On January 1, 2017, Landlord Corporation acquired the following properties

On January 1, 2017, Landlord Corporation acquired the following properties: 1. Land and an apartment building in Toronto for $1.5 million. To finance this transaction, Landlord Corporation issued a fi...

Q: On June 1, 2017, MacDougall Corporation approached Silverman Corporation about

On June 1, 2017, MacDougall Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was asking $240,000 for the land and MacDougall saw that there was some fl...

Q: In 2002, Bill Eaves worked in the purchasing department of Mavis

In 2002, Bill Eaves worked in the purchasing department of Mavis County. In 2006, Eaves was promoted to assistant county administrative officer for personnel. Five years later, Eaves was promoted to c...

Q: On January 1, 2020, Landlord Corporation acquired the following properties

On January 1, 2020, Landlord Corporation acquired the following properties: 1. Investment property consisting of land and an apartment building in Toronto for $1.5 million. To finance this transactio...

Q: On June 1, 2020, MacDougall Corporation approached Silverman Corporation about

On June 1, 2020, MacDougall Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was asking $240,000 for the land and MacDougall saw that there was some fl...

Q: Timo is the sole owner of Jazz Inc., an S corporation

Timo is the sole owner of Jazz Inc., an S corporation. On October 31, 2019, Timo executed an unsecured demand promissory note of $15,000 and transferred the note to Jazz (Jazz could require Timo to pa...

Q: Mills v. Chauvin Supreme Court of New York, Appellate

Mills v. Chauvin Supreme Court of New York, Appellate Division, Third Department, 103 A.D.3d 1041, 962 N.Y.S.2d 412 (2013). Background and Facts Gregory Mills and Robert Chauvin were friends and attor...

Q: Peter Gowin was an employee of a granite countertop business owned by

Peter Gowin was an employee of a granite countertop business owned by Joann Stathis. In November 2026, Gowin signed a promissory note agreeing to pay $12,500 to become a co-owner of the business. The...

Q: On September 1, 2020, Myo Inc. sold goods to

On September 1, 2020, Myo Inc. sold goods to Khin Corporation, a new customer. Before shipping the goods, Myo's credit and collections department conducted a procedural credit check and determined tha...

Q: On July 1, 2020, Agincourt Inc. made two sales

On July 1, 2020, Agincourt Inc. made two sales: 1. It sold excess land in exchange for a four-yea r, non-interest-bearing promissory note in the face amount of $1,101,460. The land's carrying value is...

Q: Presented next are the balance sheet accounts of Bergen Corporation as of

Presented next are the balance sheet accounts of Bergen Corporation as of December 31, 20X1and 20X0. Additional Information: • On January 2, 20X1, Bergen sold all of its marketable i...

Q: Consultex, Inc., was founded in 2015 as a small financial

Consultex, Inc., was founded in 2015 as a small financial consulting business. The company had done reasonably well in 2015–2017 but started noticing its cash dwindle early in 2018....

Q: In its most recent annual report, Appalachian Beverages reported current assets

In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and a current ratio of 1.80. Assume that the following transactions were completed: (1) purchased merchandise...

Q: In its most recent annual report, Sunrise Enterprises reported current assets

In its most recent annual report, Sunrise Enterprises reported current assets of $1,090,000 and current liabilities of $602,000. Required: Determine for each of the following transactions whether the...

Q: Blanton Plastics, a household plastic product manufacturer, borrowed $14

Blanton Plastics, a household plastic product manufacturer, borrowed $14 million cash on October 1, 2021, to provide working capital for year-end production. Blanton issued a four-month, 12% promissor...

Q: On December 31, 2018, the Clearwater Corporation acquired a custom

On December 31, 2018, the Clearwater Corporation acquired a custom-made plant asset by issuing a promissory note with a face value of $750,000, a due date of December 31, 2023, and a stated (coupon) r...

Q: On December 31, 2018, the Clearwater Corporation acquired a custom

On December 31, 2018, the Clearwater Corporation acquired a custom-made plant asset by issuing a promissory note with a face value of $750,000, a due date of December 31, 2023, and a stated (coupon) r...

Q: Norwich Manufacturing, Inc. provided you with the following comparative balance

Norwich Manufacturing, Inc. provided you with the following comparative balance sheets and income statement. Additional Information: • Norwich sold available-for-sale investments th...

Q: Precision Castparts, a manufacturer of processed engine parts in the automotive

Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $41 million cash on October 1, 2021, to provide working capital for anticipated expansio...

Q: Eskimo Joe’s, designer of the world’s second best-selling T

Eskimo Joe’s, designer of the world’s second best-selling T-shirt (just behind Hard Rock Cafe), borrows $21 million cash on November 1, 2021. Eskimo Joe’s signs a six-month, 7% promissory note to Stil...

Q: The following selected events were experienced by either Smith Eldercare Services,

The following selected events were experienced by either Smith Eldercare Services, Inc., a corporation, or Tony Smith, its major stockholder. State whether each event (1) increased, (2) decreased, or...

Q: Jacobson Manufacturing Corporation earned $84,000 in profit during 2020

Jacobson Manufacturing Corporation earned $84,000 in profit during 2020. Machinery was sold for $116,000 and a $24,000 loss on the sale was recorded. Machinery purchases totalled $330,000 including a...

Q: On January 1, Pulse Recording Studio (PRS) had the

On January 1, Pulse Recording Studio (PRS) had the following account balances. The following transactions occurred during January. a. Received $2,500 cash on 1/1 from customers on account for record...

Q: Run Heavy Corporation (RHC) is a corporation that manages a

Run Heavy Corporation (RHC) is a corporation that manages a local band. RHC was formed with an investment of $10,000 cash, paid in by the leader of the band on January 3 in exchange for common stock....

Q: Many businesses borrow money during periods of increased business activity to finance

Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. For example, Mattel builds up its inventory to meet the needs of re...

Q: Bryant Company sells a wide range of inventories, which are initially

Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, a short-term note payable is used to obtain cash for current use. The following transactions w...

Q: Consultex, Inc., was founded in 2015 as a small financial

Consultex, Inc., was founded in 2015 as a small financial consulting business. The company had done reasonably well in 2015–2017 but started noticing its cash dwindle early in 2018....

Q: In its most recent annual report, Sunrise Enterprises reported current assets

In its most recent annual report, Sunrise Enterprises reported current assets of $1,090,000 and current liabilities of $602,000. Required: Determine for each of the following transactions whether t...

Q: Barbara Jones opened Barb’s Book Business on February 1. You have

Barbara Jones opened Barb’s Book Business on February 1. You have been hired to maintain the company’s financial records. The following transactions occurred in February, the first month of operations...

Q: Jung & Newbicalm Advertising (JNA) recently hired a new creative

Jung & Newbicalm Advertising (JNA) recently hired a new creative director, Howard Rachell, for its Madison Avenue office in New York. To persuade Howard to move from San Francisco, JNA agreed to advan...

Q: Barton Chocolates used a promissory note to borrow $1,000

Barton Chocolates used a promissory note to borrow $1,000,000 on July 1, 2018, at an annual interest rate of 6 percent. The note is to be repaid in yearly installments of $200,000, plus accrued intere...

Q: Rawlco Communications operates 15 radio stations. The following events occurred during

Rawlco Communications operates 15 radio stations. The following events occurred during September. a. Placed an order for office supplies costing $2,000. Supplier intends to deliver later in the month...

Q: R&A Concrete Contractors, Inc., executed a promissory note

R&A Concrete Contractors, Inc., executed a promissory note that identifies both R&A Concrete and Grover Roberts as its makers. On the reverse side of the note, the following appears: “X John Ament Sec...

Q: On August 10, 2019, Theta Electronic Laboratories, Inc.,

On August 10, 2019, Theta Electronic Laboratories, Inc., executed a promissory note to George and Marguerite Thomson. Three other individuals, Gerald Exten, Emil O’Neil, James Hane, and their wives al...

Q: For the balance due on the purchase of a tractor, Henry

For the balance due on the purchase of a tractor, Henry Brown executed and delivered to Jane Jones his promissory note containing the following language: January 1, 2021, I promise to pay to the order...

Q: McLaughlin borrowed $10,000 from Adler, who, apprehensive

McLaughlin borrowed $10,000 from Adler, who, apprehensive about McLaughlin’s ability to pay, demanded security. McLaughlin indorsed and delivered to Adler a negotiable promissory note executed by Topp...

Q: Adams, by fraudulent representations, induced Barton to purchase one hundred

Adams, by fraudulent representations, induced Barton to purchase one hundred shares of the capital stock of the Evermore Oil Company. The shares were worthless. Barton executed and delivered to Adams...

Q: On December 2, 2021, Miles executed and delivered to Proctor

On December 2, 2021, Miles executed and delivered to Proctor a negotiable promissory note for $1,000, payable to Proctor or order, due March 2, 2022, with interest at 14 percent from maturity, in part...

Q: A negotiable promissory note executed and delivered by B to C passed

A negotiable promissory note executed and delivered by B to C passed in due course and was indorsed in blank by C, D, E, and F. G, the present holder, strikes out D’s indorsement. What is the liabilit...

Q: On June 15, 2016, Justin, for consideration, executed

On June 15, 2016, Justin, for consideration, executed a negotiable promissory note for $10,000, payable to Renee on or before June 15, 2021. Justin subsequently suffered financial reverses. In January...

Q: Tate and Fitch were longtime friends. Tate was a man of

Tate and Fitch were longtime friends. Tate was a man of considerable means; Fitch had encountered financial difficulties. To bolster his failing business, Fitch desired to borrow $6,000 from Farmers B...

Q: On July 1, Anderson sold D’Aveni, a jeweler, a

On July 1, Anderson sold D’Aveni, a jeweler, a necklace containing imitation gems, which Anderson fraudulently represented to be diamonds. In payment for the necklace, D’Aveni executed and delivered t...

Q: Leonard and Arlene Warner sold the Warner Manufacturing Company to Elliott and

Leonard and Arlene Warner sold the Warner Manufacturing Company to Elliott and Carol Archer for $610,000. A few months later, the Archers sued the Warners in a State court for fraud connected with the...

Q: John P. Butler Accountancy Corporation agreed to audit the financial statements

John P. Butler Accountancy Corporation agreed to audit the financial statements of Westside Mortgage, Inc., a mortgage company that arranged financing for real property, for the year ending December 3...

Q: Sandra and Thomas McGuire entered into a purchase and sale agreement for

Sandra and Thomas McGuire entered into a purchase and sale agreement for “Becca’s Boutique” with Pascal and Rebecca Tursi. The agreement provided that the McGuires would buy the store for $75,000, wit...

Q: Blanton Plastics, a household plastic product manufacturer, borrowed $14

Blanton Plastics, a household plastic product manufacturer, borrowed $14 million cash on October 1, 2024, to provide working capital for year-end production. Blanton issued a four-month, 12% promissor...

Q: What is a promissory note? What entry is made to record

What is a promissory note? What entry is made to record the collection of a promissory note and interest? Which journal is used?

Q: At Livermore Delivery and Courier Service, the following items were found

At Livermore Delivery and Courier Service, the following items were found to cause a difference between the bank statement and the firm’s records. Indicate whether each item will affect the bank balan...

Q: What is a promissory note? What entry is made to record

What is a promissory note? What entry is made to record the collection of a promissory note and interest?

Q: At Pleasonton Delivery and Courier Service, the following items were found

At Pleasonton Delivery and Courier Service, the following items were found to cause a difference between the bank statement and the firm’s records. Indicate whether each item will affect the bank bala...

Q: A four-year $8000 promissory note bearing interest at 13

A four-year $8000 promissory note bearing interest at 13.5% compounded monthly was discounted 21 months after issue to yield 12% compounded quarterly. What were the proceeds from the sale of the note...

Q: A five-year promissory note for $5700 plus interest at

A five-year promissory note for $5700 plus interest at 6.75% compounded semiannually was sold 18 months before maturity for $6620. What monthly compounded nominal rate of return will the buyer realize...

Q: A four-year promissory note for $3800 plus interest at

A four-year promissory note for $3800 plus interest at 9.5% compounded semiannually was sold 18 months before maturity for $4481. What quarterly compounded nominal rate of return will the buyer realiz...

Q: A $6000, three-year promissory note bearing interest at

A $6000, three-year promissory note bearing interest at 11% compounded semiannually was purchased 15 months into its term for $6854.12. What monthly compounded discount rate was used in pricing the no...

Q: The amount owed on a promissory note for $950 after two

The amount owed on a promissory note for $950 after two years and five months is $1165.79. What monthly compounded nominal rate of interest was charged on the debt?

Q: When discounted to yield 10.5% compounded monthly, a

When discounted to yield 10.5% compounded monthly, a $2600 three-year promissory note bearing interest at 12.25% compounded annually was priced at $3283.57. How many months after the issue date did th...

Q: The proceeds from the sale of a $4500 five-year

The proceeds from the sale of a $4500 five-year promissory note bearing interest at 9% compounded quarterly were $6055.62. How many months before its maturity date was the note sold if it was discount...

Q: A four-year $7000 promissory note bearing interest at 10

A four-year $7000 promissory note bearing interest at 10.5% compounded monthly was discounted 18 months after issue to yield 9.5% compounded quarterly. What were the proceeds from the sale of the note...

Q: When discounted to yield 9.5% compounded quarterly, a

When discounted to yield 9.5% compounded quarterly, a $4500 four-year promissory note bearing interest at 11.5% compounded semiannually was priced at $5697.84. How long after the issue date did the di...

Q: Precision Castparts, a manufacturer of processed engine parts in the automotive

Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $41 million cash on October 1, 2024, to provide working capital for anticipated expansio...

Q: The transactions and adjustments related to the second month of operations of

The transactions and adjustments related to the second month of operations of Zoe Amelia Corp. were as follows: a. Paid wages that had been accrued at the end of the prior month. b. Collected accounts...