Journal Entries (Note Received, Discounted, Dishonored, and Collected) Received a 120-day, 6% note in payment for accounts receivable balance o Apr. 6 $3,000. 26 Discounted the note at a rate of 7%. Received a 30-day, 7% note in payment for accounts receivable balance of May 3 $900. June 2 The $900, 30-day, 7% note is dishonored. 5 The dishonored note is paid, plus interest at 7% on the maturity value. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1

Journal Entries (Note Received, Discounted, Dishonored, and Collected) Received a 120-day, 6% note in payment for accounts receivable balance o Apr. 6 $3,000. 26 Discounted the note at a rate of 7%. Received a 30-day, 7% note in payment for accounts receivable balance of May 3 $900. June 2 The $900, 30-day, 7% note is dishonored. 5 The dishonored note is paid, plus interest at 7% on the maturity value. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1

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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A $9,600, 60-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is a.debit Cash, $9,792; credit Notes Receivable, $9,792. b.debit Notes Receivable, $9,792; credit Accounts Receivable, $9,600; Credit Interest Receivable, $192. c.debit Notes Receivable, $9,792; credit Accounts Receivable, $9,792. d.debit Accounts Receivable, $9,792; credit Notes Receivable, $9,600; Credit Interest Revenue, $192.
Entries for discounted note payable A business issued a 60-day note for $48,000 to a bank. The note was discounted at 7%. Assume a 360 days in a year. Question Content Area a. Journalize the entry to record the issuance of the note. If an amount box does not require an entry, leave it blank. If necessary, round your answers to one decimal place. blank Account Debit Credit - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area b. Journalize the entry to record the payment of the note at maturity. If an amount box does not require an entry, leave it blank. blank Account Debit Credit - Select - - Select - - Select - - Select -
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Entries for Discounted Note Payable A business issued a 60-day note for $60,000 to a bank. The note was discounted at 8%. Assume a 360-day year. a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank. Cash ✔ 0✔ Interest Expense✔ Notes Payable ✔ Feedback 0 0 0 600,000 X Check My Work a. Why is the company issuing the note? What type of note is being issi (interest-bearing or discounted)? Hot much will the company owe on the maturity date? b. Journalize the entry to record the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Notes Payable ✓✔ 0 ✓ Cash
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Entries for Installment Note Transactions On January 1, Year 1, Wedekind Company issued a $66,000, 4-year, 8% installment note to Shannon Bank. The note requires annual payments of $19,927, beginning on December 31, Year 1. Journalize the entries to record the following: Year 1 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $5,280 and principal of $14,647. Year 4 Dec. 31 Paid the annual payment on the note, including $1,476 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. Year 1, Jan. 1 Paid the annual payment on the note, which consisted of interest of $5,280 and principal of $14,647. If an amount box does not require an entry, leave it blank. Year 1, Dec. 31 12:09
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Entries for discounted note payable Instructions Chart of Accounts Instructions Journal A business issued a 45-day note for $84,000 to a creditor on account. The note was discounted at 9% Required: Journalize the entries to record (a) the issuance of the note on March 1 and (b) the payment of the note at maturity. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered Assume a 360-day year. Round your answers to nearest whole dollar.
Question A and B pleas A business issued a 90day,8% note for 67000$ to creditor on account. Illustrat the effects on the accounts and the financial statement of recording (a) the issuance of the note and (b) the payment of the note at maturity icluding interest. If no account or activity is affect d select "no effect" from the dropdown list and leave the corresponding number entry box blank. Enter account deceases and cash outflows as negative amounts
Notes Receivable Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes: Date of Note Face Amount Interest Rate Term 1. March 6 $75,000 4 % 60 days 2. April 7 40,000 6 45 days 3. August 12 36,000 5 120 days 4. October 22 27,000 8 30 days 5. November 19 48,000 3 90 days 6. December 15 72,000 5 45 days Instructions Assume 360 days in a year. 1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. Note (a) Due Date (b) Interest Dueat Maturity 1. $fill in the blank 2 2. fill in the blank 4 3. fill in the blank 6 4. fill in the blank 8 5. fill in the blank 10 6. fill in the blank 12 2. Illustrate the effects on the accounts and financial statements of the receipt of the amount due on Note 3 at its maturity. If no account or activity is…