7. BlueBlueberry Unlimited received a 180-day, 6% note for $50,000, dated Octobe

Question

7. BlueBlueberry Unlimited received a 180-day, 6% note for $50,000, dated October 15 from a customer on account.                 

a.

Determine the   due date of the note.

b.

Determine the   maturity value of the note.

c.

Journalize   the entry to record the receipt of the payment of the note at the maturity   date.

a.

Determine the   due date of the note.

b.

Determine the   maturity value of the note.

c.

Journalize   the entry to record the receipt of the payment of the note at the maturity   date.

Explanation / Answer

a)

Due Date = 13 april

b)

maturity value = 50000+50000*.06*(180/360)=$51500

c)

april 13
Debit 'Cash' $51,500
Credit 'Notes Receivable' $50,000
Credit 'Interest Income' $1500

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