Bundle: Accounting, Loose-Leaf Version, 26th + CengageNOWv2, 2 term Printed Access Card
26th Edition
ISBN: 9781305617063
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 9, Problem 9.19EX
Determine due date and interest on notes
Determine the due date and the amount of interest due at maturity on the following notes dated in 2016:
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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.
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.
The current portion of long-term notes receivable as of December 31, 2018 is
Chapter 9 Solutions
Bundle: Accounting, Loose-Leaf Version, 26th + CengageNOWv2, 2 term Printed Access Card
Ch. 9 - What are the three classifications of receivables?Ch. 9 - Dans Hardware is a small hardware store in the...Ch. 9 - What kind of an account (asset, liability, etc.)...Ch. 9 - After the accounts are adjusted and closed at the...Ch. 9 - A firm has consistently adjusted its allowance...Ch. 9 - Which of the two methods of estimating...Ch. 9 - Neptune Company issued a note receivable to...Ch. 9 - If a note provides for payment of principal of...Ch. 9 - The maker of a 240,000, 6%, 90-day note receivable...Ch. 9 - The note receivable dishonored in Discussion...
Ch. 9 - Prob. 9.1APECh. 9 - Direct write-off method Journalize the following...Ch. 9 - Allowance method Journalize the following...Ch. 9 - Allowance method Journalize the following...Ch. 9 - Percent of sales method At the end of the current...Ch. 9 - Percent of sales method At the end of the current...Ch. 9 - Analysis of receivables method At the end of the...Ch. 9 - Analysis of receivables method At the end of the...Ch. 9 - Note receivable Guzman Company received a 60-day,...Ch. 9 - Note receivable Prefix Supply Company received a...Ch. 9 - Prob. 9.6APECh. 9 - Prob. 9.6BPECh. 9 - Prob. 9.1EXCh. 9 - Nature of uncollectible accounts MGM Resorts...Ch. 9 - Entries for uncollectible accounts, using direct...Ch. 9 - Entries for uncollectible receivables, using...Ch. 9 - Entries to write off accounts receivable Creative...Ch. 9 - Providing for doubtful accounts At the end of the...Ch. 9 - Number of days past due Toot Auto Supply...Ch. 9 - Aging of receivables schedule The accounts...Ch. 9 - Estimating allowance for doubtful accounts Waddell...Ch. 9 - Adjustment for uncollectible accounts Using data...Ch. 9 - Estimating doubtful accounts Selbys Bike Co. is a...Ch. 9 - Entry for uncollectible accounts Using the data in...Ch. 9 - Entries for bad debt expense under the direct...Ch. 9 - Entries for bad debt expense under the direct...Ch. 9 - Effect of doubtful accounts on net income During...Ch. 9 - Effect of doubtful accounts on net income Using...Ch. 9 - Entries for bad debt expense under the direct...Ch. 9 - Entries for bad debt expense under the direct...Ch. 9 - Determine due date and interest on notes Determine...Ch. 9 - Entries for notes receivable Master Designs...Ch. 9 - Entries for notes receivable The series of seven...Ch. 9 - Entries for notes receivable, including year-end...Ch. 9 - Entries for receipt and dishonor of note...Ch. 9 - Entries for receipt and dishonor of notes...Ch. 9 - Prob. 9.25EXCh. 9 - Accounts receivable turnover and days sales in...Ch. 9 - Prob. 9.27EXCh. 9 - Prob. 9.28EXCh. 9 - Prob. 9.29EXCh. 9 - Entries related to uncollectible accounts The...Ch. 9 - Aging of receivables; estimating allowance for...Ch. 9 - Compare two methods of accounting for...Ch. 9 - Details of notes receivable and related entries...Ch. 9 - Notes receivable entries The following data relate...Ch. 9 - Sales and notes receivable transactions The...Ch. 9 - Entries related to uncollectible accounts The...Ch. 9 - Aging of receivables; estimating allowance for...Ch. 9 - Compare two methods of accounting for...Ch. 9 - Details of notes receivable and related entries...Ch. 9 - Notes receivable entries The following data relate...Ch. 9 - Sales and notes receivable transactions The...Ch. 9 - Prob. 9.1CPCh. 9 - Estimate uncollectible accounts For several years,...Ch. 9 - Prob. 9.3CPCh. 9 - Prob. 9.4CPCh. 9 - Accounts receivable turnover and days sales in...
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- Determine the due date and the amount of interest due at maturity on the following notes dated in 2016:arrow_forwardPart A: Calculate the interest on the following notes: Part B: Determine the maturity dates on the following notes: Check Figure 1. Interest, 66.92arrow_forwardOn which notes receivable and notes payable is it necessary to record accrued interest at the end of the period?arrow_forward
- What is the carrying amount of the loan Receivable on December 31, 2017?arrow_forwardInstructions Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes: Date Face Amount Term Interest Rate 1. Mar. 6 $75,000 60 days 4% Apr. 7 40,000 45 days 6% Aug. 12 36,000 120 days 5% Oct. 22 27,000 30 days 8% Nov. 19 48,000 90 days 3% Dec. 15 72,000 45 days 5% 2. 3. 4. 5. 6.arrow_forwardAccounting 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.arrow_forward
- What is the interest income for 2022? Based on preceding data, what is the carrying value of the note receivable on December 31, 2022?arrow_forwardWhat is the interest income for 2022? What is the carrying value of the notes receivable on December 31. 2022?arrow_forwardWhich of the following accounts are used when a short-term note payable with 5% interest is honored (paid)? A. short-term notes payable, cash B. short-term notes payable, cash, interest expense C. interest expense, cash D. short-term notes payable, interest expense, interest payablearrow_forward
- 1. What is the carrying value of the note received from Company B on October 1, 2020? 2. How much interest income should be reported on December 31, 2020 with regards to the note from Company B?arrow_forwardComputing Accrued Interest Compute the interest accrued on each of the following notes receivable held by Southland, Inc., on December 31: (Round your answer to the nearest dollar.)arrow_forwardAt what amount should the Notes payable be valued at December 31, 2020 in the statement of financial position?arrow_forward
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