Question

entires for notes recievable

Entries for notes receivable Instructions Chart of Accounts Starting Questions Instructions Spring Designs & Decorators issued a 180-day, 5% note for $82,600, dated April 13 to Jaffe 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 when calculating interest. C. Journalize the entries to record the following: (1) receipt of the note by Jaffe Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

A.

April	17 days
May	31 days
June	30 days
July	31 days
August	31 days
September	30 days
October	10 days
Total	180 days

Due date of note = October 10

b.

Interest on note = Note x Interest rate x time period

= 82,600 x 5% x 180/360

= $2,065

Maturity value of note = Note + Interest on note

= 82,600+2,065

= $84,665

c.

Date	General Journal	Debit	Credit
April 13	Note receivable	$82,600
	Accounts payable		$82,600
	( To record receipt of note)
October 10	Cash	$84,665
	Note receivable		$82,600
	Interest revenue		$2,065
	( To record receipt of payment of note)

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