Horngren's Accounting (11th Edition)
11th Edition
ISBN: 9780133856781
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem P9.31APGA
Accounting for notes receivable and accruing interest
Cathy Realty loaned money and received the following notes during 2016.
| Note | Date | Principal Amount | Interest Rate | Term |
| (D | Jun. 1 | $ 18,000 | 8% | 1 year |
| (2) | Sep 30 | 24,000 | 12% | 6 months |
| (3) | Oct. 19 | 10,000 | 9% | 60 days |
Requirements
1. Determine the maturity date and maturity value of each note.
2.
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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.
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) ___________ $
Chapter 9 Solutions
Horngren's Accounting (11th Edition)
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