Note 3 Dec. 18, 2016 Cathy Realty loaned money and received the following notesduring 2016. Requirements 1. Determine the maturity date and maturity value of each note. 2. Journalize the entries to establish each Note Receivable and to record collection of principal and interest at maturity. Include a single adjusting entry on December 31, 2016, the fiscal year-end, to record accrued interest revenue on any applicable note. Explanations are not required.
Note 3 Dec. 18, 2016 Cathy Realty loaned money and received the following notesduring 2016. Requirements 1. Determine the maturity date and maturity value of each note. 2. Journalize the entries to establish each Note Receivable and to record collection of principal and interest at maturity. Include a single adjusting entry on December 31, 2016, the fiscal year-end, to record accrued interest revenue on any applicable note. Explanations are not required.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Note 3 Dec. 18, 2016
Cathy Realty loaned money and received the following notesduring 2016.
Requirements
1. Determine the maturity date and maturity value of each note.
2. Journalize the entries to establish each Note Receivable and to record collection of principal and interest at maturity. Include a single adjusting entry on December 31, 2016, the fiscal year-end, to record accrued interest revenue on any applicable note. Explanations are not required.
Transcribed Image Text:Note
Date
Principal Amount
Interest Rate
Term
(1)
Jun. 1
$ 18,000
8%
1 year
(2)
Sep. 30
24,000
12%
6 months
(3)
Oct. 19
10,000
9%
60 days
Copyright © 2016 Pearson Education, Inc.
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