Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in an effort to raise some cash for operating acti

In an effort to raise some cash for operating activities, Blue Spruce Corporation approached Swifty...

80.2K

Verified Solution

Question

Accounting

In an effort to raise some cash for operating activities, Blue Spruce Corporation approached Swifty Ltd. and asked to borrow $140,000 (the Presidents of Blue Spruce and Swifty were cousins). Swifty agreed to loan $140,000 to Blue Spruce for three months at 6% interest. On August 1, Blue Spruce signed a promissory note for the amount, promising to repay the funds plus interest on November 1. Prepare all the journal entries on the books of Swifty to record the note receivable, assuming that Swiftys fiscal year-end is September 30 and repayment of the note receivable plus interest occurs on November 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

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

Q

Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...

Finance
Q

Genetic deficiency in RAG-1 and genetic deficiency in TAP1 both lead to the same outcome: severe...

Biology
Q

The functionality of solid oxide fuel cells depends on: Group of answer choices Vacancy defects Piezoelectricity Impurity defect Interstitial defects The...

Civil Engineering
Q

1.Which, if any, of the following scenarios would support an employee’s claim of dis- crimination on...

General Management
Q

Eric is curious to know if girls at his school spend more time on social...

Statistics
Q

Stellar Corporation has one temporary difference at the end of 2020 that will reverse and...

Accounting
Q

Bogscraft Company has outstanding 69,500 shares of $10 par value common stock and 26,900 shares...

Accounting
Q

The Viper retires a $50.4 million bond issue when the carrying value of the bonds...

Accounting
Q

Content Area The accounts in the ledger of Monroe Entertainment Co. are listed below. All...

Accounting
Q

Morizontal analysis of income statement For 20Y2, Macklin inc, reported a significant decrease in net...

Accounting
Q

Apple issued 10-year bonds three years ago at a coupon rate of 3%. The bonds...

Finance
Q

Palestine Company purchases X Company for $840,000 cash on January 1, 2019. The book value...

Accounting