Journal Entries (Note Received, Renewed, and Collected)Jan.Received a 30-day, 6% note in payment for merchandise sale of $20,000.16Feb. Received $100 (interest) on the old (January 16) note; the old note is renewed for 3015days at 7%.Mar.Received principal and interest on the new (February 15) note.1719 Received a 60-day, 6% note in payment for accounts receivable balance of $8,000.May Received $80 (interest) plus $1,000 principal on the old (March 19) note; the old note18 renewed for 60 days (from May 18) at 6%.JulyReceived principal and interest on the new (May 18) note.17Prepare general journal entries for the transactions. Assume 360 days in a year.Page: 1ACCOUNT TITLE DOC. POST.NO. REF.DATEDEBIT CREDIT20--1Jan. 1634Feb. 1546789Mar. 17910101111121213 Mar. 19131414151516 May 1816171718181919202021 July 1721222223232424in Calculating InterestIsing 360 days as the denominator, calculate interest for the following notes using theprmula I = P x R x T. Round your answers to the nearest cent.Principal RateTimeInterest$4,1006.00%30 days1,0007.50603,5008.001209506.80951,2507.251022,6007.0090

Notes receivable are a balance sheet item that represent the face value of promissory notes. A…

kenewed, Jan. Received a 30-day, 6% note in payment for merchandise sale of $ reb. Received $100 (interest) on the old (January 16) note; the old not 15 days at 7%. Mar. Received principal and interest on the new (February 15) note. 17 19 Received a 60-day, 6% note in payment for accounts receivable ba May Received $80 (interest) plus $1,000 principal on the old (March 19 18 renewed for 60 days (from May 18) at 6%.

kenewed, Jan. Received a 30-day, 6% note in payment for merchandise sale of $ reb. Received $100 (interest) on the old (January 16) note; the old not 15 days at 7%. Mar. Received principal and interest on the new (February 15) note. 17 19 Received a 60-day, 6% note in payment for accounts receivable ba May Received $80 (interest) plus $1,000 principal on the old (March 19 18 renewed for 60 days (from May 18) at 6%.

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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On May 12, Joy Company accepted a $1,000, 60-day, 6% note from Abe, granting a time extension on a past-due account. Joy discounted the note at the bank at 9% on May 28. Use ordinary interest. Calculate Joy's proceeds.
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