Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134642932
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem S9.10SE
Accounting for a note receivable
| Learning Objective 4 |
On June 6, Lakeland Bank & Trust lent $80,000 to Stephan Stow on a 30-day, 9% note.
Requirements
1. Journalize for Lakeland the lending of the money on June 6.
2. Journalize the collection of the principal and interest at maturity. Specify the date. Round to the nearest dollar.
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(Learning Objective 6: Apply GAAP for notes receivable) Record the followingnote receivable transactions in the journal of Windham Golf. How much interest revenue didWindham earn this year? Use a 365-day year for interest computations, and round interestamounts to the nearest dollar. Windham Golf has a December 31 fiscal year-end.1 Loaned $17,000 cash to Jill Wateman on a one-year, 8% note.6 Performed service for Fairway Pro, receiving a 90-day, 10% note for$14,000.16Company.31 Accrued interest revenue for the year.Received a $5,000, six-month, 5% note on account from Paulson
S9-12. Thank you!
P9-31A Accounting for notes receivable and accruing interest
Learning Objective 4
1. Note 3 Dec. 18, 2016
Cathy Realty loaned money and received the following notes during 2016.
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
Requirements
1. Determine the maturity date and maturity value of each note.
2. Journalize the entries to establisheach 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.
Chapter 9 Solutions
Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
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- Accounting for a note receivable On June 6, Lakeland Bank & Trust lent $80,000 to Stephan Stow on a 30-dav, 9% note. Requirements Journalize for Lakeland the lending of the money on June 6. Journalize the collection of the principal and interest at maturity. Specify the date. Round to the nearest dollar.arrow_forward(Learning Objective 6: Account for notes receivable)1. Compute the amount of interest during 2018, 2019, and 2020 for the following notereceivable: On May 31, 2018, Wyoming State Bank loaned $240,000 to Lindsey Weston ona two-year, 8% note.2. Which party has a/ana. note receivable?b. note payable?c. interest revenue?d. interest expense?3. How much in total would Wyoming State Bank collect if Lindsey Weston paid off the noteearly on November 30, 2018?arrow_forwardeBook Show Me How Proceeds from Notes Payable On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a 60-day note with a face amount of $39,600. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries an interest rate of 6%. b. Determine the proceeds of the note, assuming the note is discounted at 6%. Check My Work Email Instructor Save and Exit Previous Submit Assignmearrow_forward
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