Help Save & Ch Following are selected transactions for Vitalo Company. No. 1 Acc
ID: 2556085 • Letter: H
Question
Help Save & Ch Following are selected transactions for Vitalo Company. No. 1 Accepted a $6,000, 180-day, 6% note dated November 1 from Kelly lhite in granting a tine extension on her past-due account Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note. receivable. Apr. 3e white honored her note when presented for payment; February has 28 days for the current year. Complete the table to calculate the interest amounts at December 31st and April 30th and use those calculated values to prepare your journal entries (assume that no reversing entries are recorded). (Do not round intermediete calculations. Use 360 days a year.) Complete this question by entering your answers in the tabs below Interest Amounts General ournal Complete the table to calculate the interest amounts at December 31st and April 30th, November 1 January 1 Through April 30 Total Through Through Maturity December 31 Principal Rate (%) Time Total interest e to searchExplanation / Answer
Answer
Total Through Maturity
Nov 1 through Dec 31
Jan 1 through April 30
Principal
$ 6,000.00
$ 6,000.00
$ 6,000.00
Rate (%)
6%
6%
6%
Time
180 days
60 days [Nov 29 + Dec 31]
120 days [Jan 31 + Feb 28 + Mar 31 + April 30]
Total Interest
$ 180.00 [6000 x 6% x 180/360]
$ 60.00 [6000 x 6% x 60/360]
$ 120.00 [6000 x 6% x 120/360]
Date
General Journal
Debit
Credit
01-Nov
Notes receivables
$ 6,000.00
Accounts Receivables
$ 6,000.00
(notes issued)
31-Dec
Interest receivable
$ 60.00
Interest Revenue
$ 60.00
(interest revenue adjusted)
30-Apr
Cash
$ 6,180.00
Notes Receivables
$ 6,000.00
Interest Receivables
$ 60.00
Interest Revenue
$ 120.00
(notes honoured and cash received)
Total Through Maturity
Nov 1 through Dec 31
Jan 1 through April 30
Principal
$ 6,000.00
$ 6,000.00
$ 6,000.00
Rate (%)
6%
6%
6%
Time
180 days
60 days [Nov 29 + Dec 31]
120 days [Jan 31 + Feb 28 + Mar 31 + April 30]
Total Interest
$ 180.00 [6000 x 6% x 180/360]
$ 60.00 [6000 x 6% x 60/360]
$ 120.00 [6000 x 6% x 120/360]
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