Details of Notes Receivatle and Related Ertries Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the fallowing notes: Date Face Amount Interest Rate Term 1. Apr. 10 $69,000 4% 60 days 2. June 24 13,200 30 days 3. y 1 45,000 6. 120 days 4. Oct. 31 45,000 60 days 5. Nov. 15 54,000 60 days 6. Dec. 27 180,000 30 days Required: Assume 360 days in a year. 1. Determine for cach note (a) the due date and (b) the armournt of interest due at maturity, idertilying each note by number. (a) (b) Note Due Date Interest Due at Maturity (1) June 10 460 (2) June 24 66 (3) July 1 900 (4) Oct. 31 675 (5) June 15 540 (6) Jan. 27 600 2. Joumalize the entry to record the dishonor of Note (3) on its due date. If an amount box does not require an entry, leave it blark or enter "0". Jul. 1 - Accounts Receivable Notes Receivable Interest Revenue 45650 45.000 50 3. Joumalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Dec. 31 Interest Receivable Interest Revenue 414 920 4. Joumalize the entries to record the receipt of the amourts due on Notes (5) and (6) in January. If an amourt box does not require an entry, leave it blank or erter "0". Jan. 14 Cash Notes Receivable Interest Receivable Interest Revenue S4,000 Jan. 26 Cash Notes Receivable Interest Receivable 180,000 Interest Revenue
Details of Notes Receivatle and Related Ertries Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the fallowing notes: Date Face Amount Interest Rate Term 1. Apr. 10 $69,000 4% 60 days 2. June 24 13,200 30 days 3. y 1 45,000 6. 120 days 4. Oct. 31 45,000 60 days 5. Nov. 15 54,000 60 days 6. Dec. 27 180,000 30 days Required: Assume 360 days in a year. 1. Determine for cach note (a) the due date and (b) the armournt of interest due at maturity, idertilying each note by number. (a) (b) Note Due Date Interest Due at Maturity (1) June 10 460 (2) June 24 66 (3) July 1 900 (4) Oct. 31 675 (5) June 15 540 (6) Jan. 27 600 2. Joumalize the entry to record the dishonor of Note (3) on its due date. If an amount box does not require an entry, leave it blark or enter "0". Jul. 1 - Accounts Receivable Notes Receivable Interest Revenue 45650 45.000 50 3. Joumalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Dec. 31 Interest Receivable Interest Revenue 414 920 4. Joumalize the entries to record the receipt of the amourts due on Notes (5) and (6) in January. If an amourt box does not require an entry, leave it blank or erter "0". Jan. 14 Cash Notes Receivable Interest Receivable Interest Revenue S4,000 Jan. 26 Cash Notes Receivable Interest Receivable 180,000 Interest Revenue
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter8: Receivables
Section: Chapter Questions
Problem 4PB
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Transcribed Image Text:Details of Notes Receivable and Related Entries
Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the following notes:
Date
Face Amount
Interest Rate
Term
1.
Apr. 10
$69,000
4%
60 days
2.
June 24
13,200
6
30 days
3.
July 1
45,000
6
120 days
4.
Oct. 31
45,000
60 days
5.
Nov. 15
54,000
6.
60 days
6.
Dec. 27
180,000
4
30 days
Required:
Assume 360 days in a year.
1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number.
(a)
(b)
Note
Due Date
Interest Due at Maturity
(1)
June 10
460
(2)
June 24
66
(3)
July 1
900
(4)
Oct. 31
675
(5)
June 15
540
(6)
Jan, 27
600
2. Journalize the entry to record the dishonor of Note (3) on its due date. If an amount box does not require an entry, leave it blank or enter "O".
Jul. 1
- Accounts Receivable
45,650
Notes Receivable
45,000
Interest Revenue
650
3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31.
Dec. 31 Interest Receivable
414
Interest Revenue
920
4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. If an amount box does not require an entry, leave it blank or enter "0".
Jan. 14 Cash
54,540
Notes Receivable
54,000
Interest Receivable
Interest Revenue
Jan. 26 Cash
180,600
Notes Receivable
180,000
Interest Receivable
Interest Revenue
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