7 . Blackwell Industries received a 120-day, 9% note for $180,000, dated August
ID: 2374841 • Letter: 7
Question
7. Blackwell Industries received a 120-day, 9% note for $180,000, dated August 10 from a customer on account.
Required:
1.
Determine the due date of the note.
2.
Determine the maturity value of the note.
3.
Journalize the entry to record the receipt of the payment of the note at maturity.
8. Determine the due date and amount of interest due at maturity on the following notes:
Origination
Face
Term
Interest
Maturity
Interest
Date
Amount
of Note
Rate
Date
Amount
(a)
Mar 15
$8,000
60 days
9%
_______
_______
(b)
May 1
$12,000
90 days
8%
_______
_______
1.
Determine the due date of the note.
2.
Determine the maturity value of the note.
3.
Journalize the entry to record the receipt of the payment of the note at maturity.
8. Determine the due date and amount of interest due at maturity on the following notes:
Origination
Face
Term
Interest
Maturity
Interest
Date
Amount
of Note
Rate
Date
Amount
(a)
Mar 15
$8,000
60 days
9%
_______
_______
(b)
May 1
$12,000
90 days
8%
_______
_______
Explanation / Answer
Hi,
Please find the answer as follows:
1) Due date of the note = 8th December
2) Maturity Value = 180000*.09*120/360 + 180000 = 185400
3) Note Receivable - Blackwell Dr. 180000
Account Receivable - Blackwell Cr. 180000
Cash Dr. 185400
Note Receivable - Blackwell Cr. 180000
Interest Revenue Cr. 5400
8)
a) Maturity Date = 14th May
Maturity Value = 8000*60/360*.09 = 120
b) Maturity Date = 30 July
Maturity Value = 12000*90/360*.08 = 240
Thanks.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.