Required: For each of Vauxall Holdings note receivable given below: (Use 365 day

Question

Required:
For each of Vauxall Holdings note receivable given below: (Use 365 days in a year. Do not round intermediate calculations. Round the "Amount of Accrued Interest at Dec. 31, 2017" answers to 2 decimal places.)
a. Determine the maturity date.
b. Calculate the days of accrued interest, if any, at December 31, 2017 (Vauxall Holdings' year-end).
c. Calculate the amount of accrued interest, if any, at December 31, 2017.

For Note 3:
d. Prepare the entry to record the accrued interest at December 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.)

e. Prepare the entry to record the collection on the maturity date. Assume that both interest and principal are collected at maturity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.)
- Record the collection of Note 3 and interest.

Vauxall Holdings showed the following information regarding its notes receivable: Days of Accrued Note Date of Principal Interest Term Maturity Accrued Interest DateInterest at at Dec. Dec. 31, 31, 2017 Note Rate 2017 1 Nov. 1/16 $230,000 4.0% 180 days Jan. 5/17 95,000 5.0% 90 days 3 Nov. 2017 88,000 4.5% 45 days 13CH: 10/17 115,000 5.5% 30 days 2

Explanation / Answer

Workings:

Accrued interest:

Note 3: $88000 x 4.5% x 41/365 = $444.82

Note 4: $115000 x 5.5% x 21/365 = $363.90

Note Date of Note Principal Interest Rate Term Maturity Date Days of Accrued Interest at Dec. 31, 2017 Amount of Accrued Interest at Dec. 31, 2017 1 Nov. 1/16 230000 4.0% 180 days Apr. 29/17 0 days 0 2 Jan. 5/17 95000 5.0% 90 days Apr. 5/17 0 days 0 3 Nov. 20/17 88000 4.5% 45 days Jan. 4/18 41 days 444.82 4 Dec. 10/17 115000 5.5% 30 days Jan. 9/18 21 days 363.90

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