Details of Notes Receivatle and Related Ertries Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the fallowing notes: Date Face Amount Interest Rate Term 1. Apr. 10 $69,000 4% 60 days 2. June 24 13,200 30 days 3. y 1 45,000 6. 120 days 4. Oct. 31 45,000 60 days 5. Nov. 15 54,000 60 days 6. Dec. 27 180,000 30 days Required: Assume 360 days in a year. 1. Determine for cach note (a) the due date and (b) the armournt of interest due at maturity, idertilying each note by number. (a) (b) Note Due Date Interest Due at Maturity (1) June 10 460 (2) June 24 66 (3) July 1 900 (4) Oct. 31 675 (5) June 15 540 (6) Jan. 27 600 2. Joumalize the entry to record the dishonor of Note (3) on its due date. If an amount box does not require an entry, leave it blark or enter "0". Jul. 1 - Accounts Receivable Notes Receivable Interest Revenue 45650 45.000 50 3. Joumalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Dec. 31 Interest Receivable Interest Revenue 414 920 4. Joumalize the entries to record the receipt of the amourts due on Notes (5) and (6) in January. If an amourt box does not require an entry, leave it blank or erter "0". Jan. 14 Cash Notes Receivable Interest Receivable Interest Revenue S4,000 Jan. 26 Cash Notes Receivable Interest Receivable 180,000 Interest Revenue
Details of Notes Receivatle and Related Ertries Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the fallowing notes: Date Face Amount Interest Rate Term 1. Apr. 10 $69,000 4% 60 days 2. June 24 13,200 30 days 3. y 1 45,000 6. 120 days 4. Oct. 31 45,000 60 days 5. Nov. 15 54,000 60 days 6. Dec. 27 180,000 30 days Required: Assume 360 days in a year. 1. Determine for cach note (a) the due date and (b) the armournt of interest due at maturity, idertilying each note by number. (a) (b) Note Due Date Interest Due at Maturity (1) June 10 460 (2) June 24 66 (3) July 1 900 (4) Oct. 31 675 (5) June 15 540 (6) Jan. 27 600 2. Joumalize the entry to record the dishonor of Note (3) on its due date. If an amount box does not require an entry, leave it blark or enter "0". Jul. 1 - Accounts Receivable Notes Receivable Interest Revenue 45650 45.000 50 3. Joumalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Dec. 31 Interest Receivable Interest Revenue 414 920 4. Joumalize the entries to record the receipt of the amourts due on Notes (5) and (6) in January. If an amourt box does not require an entry, leave it blank or erter "0". Jan. 14 Cash Notes Receivable Interest Receivable Interest Revenue S4,000 Jan. 26 Cash Notes Receivable Interest Receivable 180,000 Interest Revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:# 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:
| Date | Face Amount | Interest Rate | Term |
|-------|-------------|---------------|-------|
| Apr. 10 | $69,000 | 4% | 60 days |
| June 24 | $13,200 | 6% | 30 days |
| July 1 | $45,000 | 6% | 120 days|
| Oct. 31 | $45,000 | 9% | 60 days |
| Nov. 15 | $54,000 | 6% | 60 days |
| Dec. 27 | $180,000 | 4% | 30 days |
### Required:
Assume 360 days in a year.
1. **Determine for each note:**
- (a) The due date
- (b) The amount of interest due at maturity, identifying each note by number.
| Note | Due Date | Interest Due at Maturity |
|------|----------|--------------------------|
| (1) | June 10 | $460 |
| (2) | June 24 | $66 |
| (3) | July 1 | $900 |
| (4) | Oct. 31 | $675 |
| (5) | June 15 | $540 |
| (6) | Jan. 27 | $600 |
2. **Journalize the entry to record the dishonor of Note (3) on its due date.**
- **July 1:**
- Accounts Receivable: $45,650
- Notes Receivable: $45,000
- Interest Revenue: $650
3. **Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31.**
- **Dec. 31:**
- Interest Receivable: $411
- Interest Revenue: $920
4. **Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January.**
- **Jan. 14:**
- Cash
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