Note receivable: Note receivable refers to a written promise received by the creditor from the debtor in formal, for the amounts to be settled within a stipulated period of time. This written promise is issued by a debtor or borrower to the lender or creditor. Notes receivable is an asset of a business. Notes receivable often used for the credit periods of more than 60 days. Due date: Due date is the maturity date on note, on due date the borrower is supposed to repay the face value of the note along with interest. Interest on note: Interest on note is the amount charged on the principal value of note for the privilege of borrowing money. Interest is to be paid by the borrower and to be received by the lender. The due date and the amount of interest due at maturity for the notes dated in 2016.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 8.19EX

To determine

Note receivable:

Note receivable refers to a written promise received by the creditor from the debtor in formal, for the amounts to be settled within a stipulated period of time. This written promise is issued by a debtor or borrower to the lender or creditor. Notes receivable is an asset of a business. Notes receivable often used for the credit periods of more than 60 days.

Due date:

Due date is the maturity date on note, on due date the borrower is supposed to repay the face value of the note along with interest.

Interest on note:

Interest on note is the amount charged on the principal value of note for the privilege of borrowing money. Interest is to be paid by the borrower and to be received by the lender.

The due date and the amount of interest due at maturity for the notes dated in 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Accounting for notes receivable and accruing interest Carley Realty loaned money and received the following notes during 2018. Determine the maturity date and maturity value of each note. Journalize the entries to establish each Note Receivable and to record collection of principal and interest at maturity. Include a single adjusting entry on December 31, 2018, the fiscal year-end, to record accrued interest revenue on any applicable note. Explanations are not required. Round to the nearest dollar.

Determine due date and interest on notes Determine the due date and the amount of interest due at maturity on the following notes: Date of note A. January 10* B . March 19 C. June 5 D. September 8 E. November 20 * February 2016 has 28 days Face amount A.$40,000 B. 18,000 C. 90,000 D. 36,000 E. $27,000 Interest rate A. 5% B. 8% C. 7% D. 3% E. 4% Term of note A. 90 days B. 180 days C. 30 days D. 90 days E. 60 days Assume 360 days in a year one commuting the interest. Note Due date. Interest (A) __________ $ (B) ___________ $ (C) ___________ $ (D) ____________ $ (E) ___________ $

Accounting for notes receivable and accruing interest Carley Realty loaned money and received the following notes during 2018. Note Date Principal Amount Interest rate term April 1 $6000 7% 1 year Sept 30 $12000 6% 6 month Sept 19 $18000 8% 90 days Requirements Determine the maturity date and maturity value of each note. Journalize the entries to establish each Note Receivable and to record collection of principal and interest at maturity. Include a single adjusting entry on December 31, 2018, the fiscal year-end, to record accrued interest revenue on any applicable note. Explanations are not required. Round to the nearest dollar.