Watson Company issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. Assume a 360-day year when calculating interest. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. c-1. Journalize the entries to record the receipt of the note by the payee.* c-2. Journalize the entries to record the receipt by the payee of the amount due on the note at maturity.
Watson Company issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. Assume a 360-day year when calculating interest. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. c-1. Journalize the entries to record the receipt of the note by the payee.* c-2. Journalize the entries to record the receipt by the payee of the amount due on the note at maturity.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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Question
Watson Company issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. Assume a 360-day year when calculating interest.
Required:
| a. | Determine the due date of the note. |
| b. | Determine the maturity value of the note. |
| c-1. | |
| c-2. | Journalize the entries to record the receipt by the payee of the amount due on the note at maturity.* |
| *Refer to the Chart of Accounts for exact wording of account titles. Round answers to the nearest $1. |
Required:
| a. | Determine the due date of the note. |
| b. | Determine the maturity value of the note. |
| c-1. | Journalize the entries to record the receipt of the note by the payee.* |
| c-2. | Journalize the entries to record the receipt by the payee of the amount due on the note at maturity.* |
| *Refer to the Chart of Accounts for exact wording of account titles. Round answers to the nearest $1. |
X
First Questions
Determine the due date of the note.
Determine the maturity value of the note.
| Maturity value | $
|
| Journalize the entries to record the receipt of the note by the payee on April 5. Refer to the Chart of Accounts for exact wording of account titles. |
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