Hasty and Tasty Foodservice received a 120-day, 8% note for $24,000, dated April 9, from a customer on account. Assume 360 days in a year.

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Question

Hasty and Tasty Foodservice received a 120-day, 8% note for $24,000, dated April 9, from a customer on account. Assume 360 days in a year.

a. Determine the due date of the note.

b. Determine the maturity value of the note.

c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank.

business accounting

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Answer 1

Answer #1

a)	Maturity Date Of Note

	= 9 April +120 Days

	=7 August

b)	Maturity value of note

	Interest on note = $240008%120/360

	=$640

	Maturity value = $24000+640

	=$24640

c)	Date	Account Title	Debit	Credit
		Cash	$ 24,640
		Interest Income		$ 640
		Note Receivable		$ 24,000




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Answer 2

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Hasty and Tasty Foodservice received a 120-day, 8% note for $24,000, dated April 9, from a customer on account. Assume 360 days in a year.

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Hasty and Tasty Foodservice received a 120-day, 8% note for $24,000, dated April 9, from a customer on account. Assume 360 days in a year.

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Hasty and Tasty Foodservice received a 120-day, 8% note for $24,000, dated April 9, from a customer on account. Assume 360 days in a year.

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Hasty and Tasty Foodservice received a 120-day, 8% note for $24,000, dated April 9, from a customer on account. Assume 360 days in a year.