Andy Cooke gave a 60-day, 5.5 percent note, dated February 14, to Key Company, a creditor, in the amount of $10,500. a. What is the due date of the note? b. How much interest is to be paid on the note at maturity? c. Write the entries in general journal form to record issuance of the note by the maker and payment of the note at maturity as they would appear on Cooke’s books. Check Figure (c) 4/15 Cash, $10,596.25

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College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087
BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087

Solutions

Chapter D, Problem 2P
Textbook Problem

Andy Cooke gave a 60-day, 5.5 percent note, dated February 14, to Key Company, a creditor, in the amount of $10,500.

  1. a. What is the due date of the note?
  2. b. How much interest is to be paid on the note at maturity?
  3. c. Write the entries in general journal form to record issuance of the note by the maker and payment of the note at maturity as they would appear on Cooke’s books.

Check Figure

(c) 4/15 Cash,

$10,596.25

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