Watson Company issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. Assume a 360-day year when calculating interest. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. c-1. Journalize the entries to record the receipt of the note by the payee.* c-2. Journalize the entries to record the receipt by the payee of the amount due on the note at maturity.
Watson Company issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. Assume a 360-day year when calculating interest. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. c-1. Journalize the entries to record the receipt of the note by the payee.* c-2. Journalize the entries to record the receipt by the payee of the amount due on the note at maturity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Watson Company issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. Assume a 360-day year when calculating interest.
Required:
| a. | Determine the due date of the note. |
| b. | Determine the maturity value of the note. |
| c-1. | |
| c-2. | Journalize the entries to record the receipt by the payee of the amount due on the note at maturity.* |
| *Refer to the Chart of Accounts for exact wording of account titles. Round answers to the nearest $1. |
Required:
| a. | Determine the due date of the note. |
| b. | Determine the maturity value of the note. |
| c-1. | Journalize the entries to record the receipt of the note by the payee.* |
| c-2. | Journalize the entries to record the receipt by the payee of the amount due on the note at maturity.* |
| *Refer to the Chart of Accounts for exact wording of account titles. Round answers to the nearest $1. |
X
First Questions
Determine the due date of the note.
Determine the maturity value of the note.
| Maturity value | $
|
| Journalize the entries to record the receipt of the note by the payee on April 5. Refer to the Chart of Accounts for exact wording of account titles. |
PAGE 1
JOURNAL
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
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| Journalize the entries to record the receipt by the payee of the amount due on the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. Round answers to the nearest $1. |
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