May June 22 22 21 July 21 21 28 88 Sept. 11 Nov. 10 Received a 30-day, 6% note in payment for merchandise sale of $24,000. Received $120.00 cash (interest) on the old (May 22) note; the old note is renewed for 30 days at 7%. Received principal and interest on the new (June 21) note. Received a 45-day, 7% note in payment for accounts receivable balance of $11,200. * Received $98.00 cash (interest) plus $2,000 principal on the old (July 28) note; the old note is renewed for 60 days (from September 11) at 7.5%. Received principal and interest on the new (September 11) note. Required: Prepare general journal entries for the above transactions.

May June 22 22 21 July 21 21 28 88 Sept. 11 Nov. 10 Received a 30-day, 6% note in payment for merchandise sale of $24,000. Received $120.00 cash (interest) on the old (May 22) note; the old note is renewed for 30 days at 7%. Received principal and interest on the new (June 21) note. Received a 45-day, 7% note in payment for accounts receivable balance of $11,200. * Received $98.00 cash (interest) plus $2,000 principal on the old (July 28) note; the old note is renewed for 60 days (from September 11) at 7.5%. Received principal and interest on the new (September 11) note. Required: Prepare general journal entries for the above transactions.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 2P

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Computing the Proceeds from the Sale of Notes Receivable Below are several customer notes receivable that were sold without recourse. 1. An 8,000, 60-day, non-interest-bearing note sold after 15 days at 12%. 2. A 9,000, 12%, 60-day note sold alter 30 days at 14% 3. A 6,000, 10%, 90-day note sold after 30 days at 12% 4. A 10,000, 12%, 120-day note sold after 45 days at 15% Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a 360-day year.)
2. On Oct 1, 20X1 ABC Co. discounted a one year 12% P600,000 note received from a customer on January 1, 20X1 with a bank at 14% on a without recourse basis. How much is the proceeds from note discounting? 576,480 648,480 654,000 672,000
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Note Receivable Maggiano Supply Company received a 120-day, 6% note for $420,000, dated June 12, from a customer on account. Assume 360 days in a year. a. Determine the due date of the note. b. Determine the maturity value of the note.$ c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Cash Notes Receivable Interest Revenue
Journalize the following transactions: i. ii. iii. iv. V. vi. February 1. Signed a 60-day, 10% note, $5,000.00. R80. April 2. Paid cash for the maturity value of the Feb. 1 note: principal, $5,000.00, plus interest, $83.33. C215. April 20. Received cash for the maturity value of Notes Receivable No. 34: principal $500.00, plus interest, $45.00. R78. June 1. Signed a 90-day, 18% note to True North Toilets Corp. for an extension of time on this account payable, $2,500.00. M44. December 15. The board of directors declared a dividend of $5.00 per share; capital stock issued is 3,000 shares. M234. December 31. Paid cash for dividend declared December 15. C345.
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da 14 (Notes Receivable and Notes Receivable Discounted) The following notes receivable transactions occurred for the Hara Company during the last three months of the current year. (Assume all notes are dated the day the transaction occurred.) Oct. 9 Received a $5,000, 12%, 60-day note from Kanda a customer. Oct. 12 Received a $6,000, 10%, 90-day note from Darun a customer. Oct. 15 Discounted the Kanda note with recourse at the bank at 14%. Nov. 11 Discounted the Darun note with recourse at the bank at 15%. Nov. 16 Received a $8,000, 12%, 60-day note from Nena a customer. Nov. 20 Received a $6,000, 11%, 120-day note from Wanna a customer. Dec. 1 Received a $9,000, 13%, 90-day note from Wirun a customer. Dec. 8 Received notice that the Kanda note was paid at maturity. Dec. 10 Discounted the Wanna note with recourse at the bank at 13%. Required 1. Prepare journal entries to record the preceding note transactions and the necessary adjusting entries on December 31. (Assume that Hara does…
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4. AB company receives $10,000 for a 6 month, 8% note on 11/1/20. Prepare the journal entry for the receipt. Account Debit Credit 5. Prepare the journal entry to accrue interest on the above note at 12/31/20. Account Debit Credit 6. Prepare the entry to record payment of the above note in full on it's due date of 5/1/21. Account Debit Credit 7. AB Company purchases a truck in the amount of $15,000. Additional costs include sales tax of $1500, painting of $2500, license of $150 and a 1 year auto insurance policy of $1200. Complete the journal entry for the auto purchase. Account Debit Credit
8. ABC Co. paid XYZ Co. $2,000 for merchandise with a 60-day, 12% note dated October 31st. If ABC pays off the note at maturity, what entry should XYZ make on its books at that time? A. Cash 2,040 Notes Receivable 2,040 B. Notes Payable 2,000 Interest Expense 40 Cash 2,040 C. Cash 2,040 Notes Receivable 2,000 Interest Revenue 40 D. Cash 2,240 Notes Receivable 2,000 Interest Revenue 240
Compute the due date, amount of interest and total cash received on the maturity date for the following notes receivable: 1-Date of Note: May 30; $24,000, 9%, 120 days 2-Date of Note March1; $32,500, 8%, 90 days 3-Date of Note November6; $400,000, 12%; 5months
TB MC Qu. 07-137 (Algo) On November 1, Orpheum Company accepted... On November 1, Orpheum Company accepted a $12,000, 90-day, 10% note from a customer to replace an account receivable. What entry should be made by Orpheum on the November 1 to record the acceptance of the note? Multiple Choice ces Debit Notes Receivable $12,000; credit Cash $12,000. Debit Notes Receivable $12,000; credit Accounts Receivable $12,000. Debit Notes Receivable $12,000; credit Sales $12,000. Debit Notes Receivable $12,300; credit Accounts Receivable $12,000; credit Interest Dovonue t200 < Prev 13 of 20 Next 1,069 15 tv MacBook Air 80 F3 DD F2 F4 F5 F6 F7 F8 F9 %23 %24 & 3 4 7 8. W R T Y < co