There are 17 units of the protuct in the physical inventory at September 30. The

Question

There are 17 units of the protuct in the physical inventory at September 30. The periodic inventory Weighted average cost methods. (23 points) For each of the following notes receivable held by Christensen Company determine the interest revenue to be reported on the income statements for the year ended December 31. Round answers to nearest whole dollar. (12 Points) Date Rate Time Interest Revenue $62 60 day Oct. 7 an. 6 Nov. 12 $43,00 60 day Blackwell Industries received a 120-day, 9% note for S 180,000, dated August 10 from a customer on account. (15 points) Required: (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 maturity Post. Debit Ref. Credit Date Description

Explanation / Answer

Date Face Rate Time Interest days for year ended Dec 31 Interest Revenue Hint Aug. 8 $        45,000 7% 45 days 45 $                         394 (45000*7%*45/360) Oct. 7 $        62,000 5% 60 days 60 $                         517 (62000*5%*60/360) Jan. 6 $        28,000 4% 120 days 120 $                         373 (28000*4%*120/360) Nov. 12 $        43,000 6% 60 days 49 $                         351 (43000*6%*49/360) Assumption : 360 days, since not specified a Issue Date August 10 Maturity 120 days Due date December 8 b Maturity value Interest 180000 x 9% x 120/360 $                     5,400 Add: face value $                 180,000 Maturity Value $                 185,400 c Cash $ 185,400 Interest Revenue $      5,400 note receivable $ 180,000 Note: I have tried my best for correct solution still need any further help please ask in comment. Hope a positive feedback, Thank You.

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