Using Financial Accounting Information
10th Edition
ISBN: 9781337276337
Author: Porter, Gary A.
Publisher: Cengage Learning,
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Chapter 4, Problem 4.6.6P
To determine
Concept Introduction:
To finalize books of accounts company need to adjust all the adjustments which does not recorded in the trail balance of the company. All these adjustments have two effects.
Interest is given on loan with a specified rate. This rate is decided in the agreement between the two parties.
To Calculate: Monthly rate of interest on the loan.
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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.
Answer with formulas for upvotes
Accounting for notes receivable and accruing interest
Carley Realty loaned money and received the following notes during 2018.
Note Date Principal Amount Interest rate term
April 1 $6000 7% 1 year
Sept 30 $12000 6% 6 month
Sept 19 $18000 8% 90 days
Requirements
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.
Chapter 4 Solutions
Using Financial Accounting Information
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