Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertisi

Question

Details of Notes Receivable and Related Entries

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 $93,000 4 % 60 days 2. June 24 14,400 6 30 days 3. July 1 36,000 6 120 days 4. Oct. 31 36,000 9 60 days 5. Nov. 15 54,000 6 60 days 6. Dec. 27 162,000 4 30 days

Explanation / Answer

1)

July1+120 = 29 oct

2)

3)

**interest accrued on note 5 :54000*.06*46/360=414

Interest acrrued on note 6 :162000*.04*4/360=72

4)

Due date Interest due at maturity 1 10April +60 days = 9 June 93000*.04*60/360=620 2 June24+30 days =24 july 14400*.06*30/360=72 3

July1+120 = 29 oct

36000*.06*120/360=720 4 oct 31+60 = 30 dec 36000*.09*60/360=540 5 Nov 15+ 60 = 14 jan (next year) 54000*.06*60/360=540 6 Dec 27+30 = 26 jan (next year) 162000*.04*30/360=540

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.