Question

eBook Show Me How Calculator Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the following notes: Date Interest Rate Term 1. Apr. 10 4% 60 days Face Amount $78,000 14,400 45,000 2. June 24 30 days July 1 4. Oct. 31 120 days 60 days 60 days 30 days 5. 45,000 90,000 126,000 Nov. 15 6. Dec. 27 Required: Assume 360 days in a year. 1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number (b) Interest Due at Maturity Note (1) 520 Due Date June 9 July 24 Oct. 29 72 (2) (3) 900 375 Dec. 30 900 Jan 14 420 Jan. 27 at man hack Works rema

Answer 1

Answer:

ans 2
Date	Accounts titles and Explanation	Debit ($)	Credit ($)
	Accounts Receivable	45,900
	Notes Receivable		45,000
	Interest revenue(45000*6%*120/360)		900
ans 3	Interest Receivable	746
	Interest revenue		746
ans 4
14-Jan	Cash	90,900
	Interest Receivable		690
	Interest Revenue (90000*6%*14/360)		210
	Notes Receivable		90,000
26-Jan	Cash	1,26,420
	Interest Receivable		56
	Interest Revenue (126000*4%*26/360)		364
	Notes Receivable		1,26,000

Working

On 31st Dec:

Interest accrued on note 5 = $90,000 * 6% * 46 days /360 days = $690

Interest accrued on note 6 = $126,000 * 4% * 4 days /360 days = $56