Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X
ID: 2535603 • Letter: G
Question
Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the following notes:
Required:
Assume 360 days in a year.
1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by
number.
2. Journalize the entry to record the dishonor of Note (3) on its due date. If an amount box does not require an entry,
leave it blank or enter "0".
3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31.
4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. If an amount box
does not require an entry, leave it blank or enter "0".
Date Face Amount Interest Rate Term 1. Apr. 10 $75,000 4 % 60 days 2. June 24 18,000 6 30 days 3. July 1 45,000 6 120 days 4. Oct. 31 45,000 5 60 days 5. Nov. 15 90,000 6 60 days 6. Dec. 27 180,000 4 30 daysExplanation / Answer
Solution 1:
Solution 2:
Solution 3:
Solution 4:
Note Due Date Interest due at maturity Working Amount 1 09-Jun 75000*4%*60/360 $500.00 2 24-Jul 18000*6%*30/360 $90.00 3 29-Oct 45000*6%*120/360 $900.00 4 30-Dec 45000*5%*60/360 $375.00 5 14-Jan 90000*6%*60/360 $900.00 6 26-Jan 180000*4%*30/360 $600.00Related Questions
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