Question

please help with date and numbers. i am not quite sure if is correct. thank you

??? POST. 1 Mar. 3 Village Dock Café purchased merchandise on account, $6,000. Apr. 2 Village Dock Café issued a 60-day, 10% note to pay off the account. Village Dock Café paid on the maturity date $3,200 plus interest on the note issued on April 2, and issued a new 90-day, 14% note for the unpaid balance. ??? Village Dock Café paid off the preceding note on the maturity date. Required: Prepare the general journal entries for the above transactions. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. Page: 1 DATE DESCRIPTION DEBIT CREDIT REF. Mar. 3 Purchases 6,000 1 Accounts Payable 3 Apr. 2 Accounts Payable 6,000 Notes Payable Notes Payable (old) 6 Interest Expense 6 Cash 3,800 7 Notes Payable (new) 2,3008 Notes Payable 9 Interest Expense Cash 2 6,000 2 3 6,000 4 5 June 1 6,000 5 1,000 7 8 9 Aug. 30 2,300 10 98 10 11 2.398 11

Answer 1

Working Notes:
	Calculation of due date of the maturity of Note issued as on April 2
		Days	Cumulative Days
	Date of received of note	April. 02
	Balance in days in the month of April	28	28
	Days in the month of May	31	59
	Balance Days in the month of June	1	60
	So, Date of Maturity of Bonds is 1st of June
	Comment = Your answer is correct
	Calculation of due date of the maturity of Note issued as on Jun 1
		Days	Cumulative Days
	Date of received of note	June.01
	Balance in days in the month of June	29	29
	Days in the month of July	31	60
	Baalnce Days in the month of August	30	90
	So, Date of Maturity of Bond is August 30
	Comment = Your answer is correct
Solution:
Journal Entries
Date	ACCT Title and explanation	Debit	Credit
Mar. 03	Purchases	$                     6,000
	Account Payable		$                     6,000
April.02	Account Payable	$                     6,000
	Notes Payable		$                     6,000
June.01	Note Payable (old)	$                     6,000
	Interest Expenses($ 6000 X 10% X 60/360)	$                         100
	Cash ($ 3200 + $ 100)		$                     3,300
	Note Payable ($ 6000 - $ 3200)		$                     2,800
Aug.30	Note Payable	$                     2,800
	Interest Expenses($ 2800 X 14% X 90/360)	$                           98
	Cash		$                     2,898