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

Question

Question

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.

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

a) Due date of note = Aug 10 + 120 days = December 8th

So, Due date of note = December 8th

b) Maturity value of note = $180,000 + ($180,000 * 9% * 120/365)

Maturity value of note = $180,000 + $5,326.03

Maturity value of note = $185,326.03

c) Cash account.........................debit $185,326.03

To interest revenue account.........credit $5,326.03

To Note receivable account...........credit $180,000

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 on account.

PE 9-5B Note receivablePrefix Supply Company received a 120-day, 8% note for $450,000, dated April 9, from a customer on account. 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.
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.
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 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.
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.

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.
Cube Ice Company received a 120-day, 10% note for $36,000, dated April 9 from a customer...

Cube Ice Company received a 120-day, 10% 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. August 7 b. Determine the maturity value of the note. $ 35,640 X Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $140,400 has an estimated residual value of $5,400 and an estimated useful life of 10 years. Determine the following: (a)...

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

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

Homework Answers

Add Answer to:
Blackwell Industries received a 120-day, 9% note for $180,000, dated August 10 from a customer on account.

Post as a guest

Earn Coins

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

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

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.

Note Receivable Cube Ice Company received a 120-day, 8% note for $96,000, dated April 9, from...

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, 7% note for $36,000, dated April 9,...

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

Guzman Company received a 60-day, 5% note for $57,000 dated July 12 from a customer on account. Required: a. Determine t...

Cube Ice Company received a 120-day, 10% note for $36,000, dated April 9 from a customer...

Spring Designs & Decorators issued a 120-day, 4% note for $60,000, dated April 13 to Jaffe Furniture Company on account

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

Homework Answers

Add Answer to: Blackwell Industries received a 120-day, 9% note for $180,000, dated August 10 from a customer on account.

Post as a guest

Earn Coins

Add Answer to:
Blackwell Industries received a 120-day, 9% note for $180,000, dated August 10 from a customer on account.