Accounting for notes receivable and accruing interestCarley Realty loaned money and received the following notes during 2018.Determine the maturity date and maturity value of each note.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, 2018, the fiscal year-end, to record accrued interest revenue on any applicable note. Explanations are not required. Round to the nearest dollar. NoteDatePrincipal AmountInterest RateTerm(1)$ 6,0001 year6 months90 daysApr. 17%(2)Sep. 3012,0006%(3)Sep. 1918,0008%

1. The maturity date of note 1, note 2 and note 3 are 31 March, 31 March and 18 December. The…

Answered: Note Date Principal Amount Interest…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Accounting for notes receivable and accruing interest

Carley Realty loaned money and received the following notes during 2018.

Determine the maturity date and maturity value of each note.
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, 2018, the fiscal year-end, to record accrued interest revenue on any applicable note. Explanations are not required. Round to the nearest dollar.

Note
Date
Principal Amount
Interest Rate
Term
(1)
$ 6,000
1 year
6 months
90 days
Apr. 1
7%
(2)
Sep. 30
12,000
6%
(3)
Sep. 19
18,000
8%

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