Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9, from a customer on account.

Question

Question

Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9, from a customer on account.

PE 9-5B Note receivable

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.

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

A. )

The due date for the Note is August 7

Explanation;

April	21 Days ( 30 - 9 )
May	31 Days
June	30 Days
July	31 Days
August	7 Days
Total	120 Days

B . Maturity Value of the Note $ 462,000

Explanation

= $450,000 + [$ 450,000 * 8 % * (120/360)]

= $ 450,000 + $ 12,000

= $ 462,000

C.

Date	Account Title and Explanation	Debit	Credit
August 7	Cash	$ 462,000
	Note Receivable		$ 450,000
	Interest Revenue		$ 12,000

Add a comment

Answer 2

Similar Homework Help Questions

Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer...

Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on account. Required: 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. Refer to the Chart of Accounts for exact wording of account titles.
Note Receivable Cube Ice Company received a 120-day, 8% note for $96,000, dated April 9, from...

Note Receivable Cube Ice Company received a 120-day, 8% note for $96,000, 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.
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.

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.

Note Receivable Quick Tire and Lube received a 120-day, 6% note for $84,000, dated April 9,...

Note Receivable Quick Tire and Lube received a 120-day, 6% note for $84,000, 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.
Note Receivable Quick Tire and Lube received a 120-day, 7% note for $36,000, dated April 9,...

Note Receivable Quick Tire and Lube received a 120-day, 7% note for $36,000, 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.
Blackwell Industries received a 120-day, 9% note for $180,000, dated August 10 from a customer on account.

Blackwell Industries received a 120-day, 9% note for $180,000, dated August 10 from a customer on account. Required (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.

Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12 from a customer...

Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12 from a customer on account. Assume 360 days per year. a. Determine the due date of the note. b. Determine the maturity value of the note. When required, round your answers to the nearest dollar. $ 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. When required, round...
Guzman Company received a 60-day, 5% note for $57,000 dated July 12 from a customer on account. Required: a. Determine t...

Guzman Company received a 60-day, 5% note for $57,000 dated July 12 from a customer on account. Required: 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. Refer to the Chart of Accounts for exact wording of account titles.
Spring Designs & Decorators issued a 120-day, 4% note for $60,000, dated April 13 to Jaffe Furniture Company on account

Spring Designs & Decorators issued a 120-day, 4% note for $60,000, dated April 13 to Jaffe Furniture Company on account. Assume a 360-day year when calculating interest. a. Determine the due date of the note. b. Determine the maturity value of the note c1. Journaline the entry to record the receipt of the note by Jaffe Furniture. c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank

Valley Designs issued a 120-day, 6% note for $80,000 dated April 20 to Bork Furniture Company on account.

Valley Designs issued a 120-day, 6% note for $80,000 dated April 20 to Bork Furniture Company on account. Required: A. Determine the due date of the note. B. Determine the maturity value of the note. Assume a 360-day year. C. Journalize the entries to record the following: (1) receipt of the note by Bork Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.

Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9, from a customer on account.

Homework Answers

Add Answer to:
Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9, from a customer on account.

Post as a guest

Earn Coins