Recording Notes Receivable On September 30, Q. Computer Inc. has the following Notes Receivable: Date Maker Face value Term July 4 Suntory Co. $350,000 90 days Aug. 15 Toyota Co. 260,000 60 days Sep. 30 Kyoto Inc. 580,000 4 months Interest is computed following the practice that there are 360 days a year. Required: 1. What's the maturity date of these three notes? 2. Suppose that Q. Computer Inc. prepares financial statements as of September 30. Make the entries necessary on September 30. 3. Make the entries necessary during October for Q. Computer Inc., assuming that on the maturity date the note maker pays the note and interest in full. Interest rate 8% 9% 10%
Recording Notes Receivable On September 30, Q. Computer Inc. has the following Notes Receivable: Date Maker Face value Term July 4 Suntory Co. $350,000 90 days Aug. 15 Toyota Co. 260,000 60 days Sep. 30 Kyoto Inc. 580,000 4 months Interest is computed following the practice that there are 360 days a year. Required: 1. What's the maturity date of these three notes? 2. Suppose that Q. Computer Inc. prepares financial statements as of September 30. Make the entries necessary on September 30. 3. Make the entries necessary during October for Q. Computer Inc., assuming that on the maturity date the note maker pays the note and interest in full. Interest rate 8% 9% 10%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P 7-9
LOS
Recording Notes Receivable
On September 30, Q. Computer Inc. has the following Notes Receivable:
Term
90 days
60 days
4 months
Interest is computed following the practice that there are 360 days a year.
Date
July 4
Aug. 15
Sep. 30
Maker
Suntory Co.
Toyota Co.
Kyoto Inc.
Face value
$350,000
260,000
580,000
Interest rate
8%
9%
10%
Required:
1. What's the maturity date of these three notes?
2. Suppose that Q. Computer Inc. prepares financial statements as of September 30. Make the
entries necessary on September 30.
3.
Make the entries necessary during October for Q. Computer Inc., assuming that on the maturity
date the note maker pays the note and interest in full.
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