A $10,000, 12%, 60-day note receivable is received on January 12. The note is discounted at 12% on January 18. What is the maturity value of the note ? Prepare journal entry to record at the date of maturity.

A $10,000, 12%, 60-day note receivable is received on January 12. The note is discounted at 12% on January 18. What is the maturity value of the note ? Prepare journal entry to record at the date of maturity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A $10,000, 12%, 60-day note receivable is received on January 12. The note is discounted at 12% on
January 18. What is the maturity value of the note ? Prepare journal entry to record at the date of
maturity.

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Step 1: Introduction of notes receivable

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Step 2: Computation of maturity value of the note

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Step 3: Prepare the journal entry to record at the date of maturity

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