You have the following transaction during the year of 2020 as related to Steve company: 1. On the 1" of October, the company accepted a 5 month, 7%, note as a settlement of 70,000 uncollected previous accounts. 2. On the 15 of November the company accepted a 120 days, 10%, note in exchange for services provided total of 10,000. 3. On the 31" of December the company granted a loan for a client total of 60,000 by accepting a note that due in 3 years offering 12%. Answer the following: What is the maturity date of the first note What is the maturity date of the second note What is the maturity date of the third note What is the journal entry to be recorded as related to the first note at the maturity date assuming the note is honored What is the journal entry to be recorded as related to the second note at the maturity date assuming the note is dishonored and after negotiations with the client he agree to pay after I year What is the journal entry to be recorded as related to the second note at the maturity date assuming the note is dishonored and the client announced that he is facing a bankruptcy

You have the following transaction during the year of 2020 as related to Steve company: 1. On the 1" of October, the company accepted a 5 month, 7%, note as a settlement of 70,000 uncollected previous accounts. 2. On the 15 of November the company accepted a 120 days, 10%, note in exchange for services provided total of 10,000. 3. On the 31" of December the company granted a loan for a client total of 60,000 by accepting a note that due in 3 years offering 12%. Answer the following: What is the maturity date of the first note What is the maturity date of the second note What is the maturity date of the third note What is the journal entry to be recorded as related to the first note at the maturity date assuming the note is honored What is the journal entry to be recorded as related to the second note at the maturity date assuming the note is dishonored and after negotiations with the client he agree to pay after I year What is the journal entry to be recorded as related to the second note at the maturity date assuming the note is dishonored and the client announced that he is facing a bankruptcy

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 30E

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