Requirement 1. Determine the maturity date and maturity value of each note. (For

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Requirement 1. Determine the maturity date and maturity value of each note. (For each applicable note, compute interest using a 365-day year. Round to the nearest dollar.) Due date Date Principal Amount Interest Rate Month/Day Year Maturity value Note (1) Apr. 1 (2) Sep. 30 Term Apr. 12019 20,000 22,000 16,000 13% 5% 11% 1 year 6 months Sep. 302019 Dec. 18 2018 Sep. 19 90 days Requirement 2. Jounalize the entries to establish each Note Receivable and to record collection of principal and interest at maturity. Include a single adjusting entry on December 31, 2018, the fiscal year-end, to record accrued interest revenue on any applicable note. Explanations are not required. Round to the nearest dollar. (Record debits first, then credits. Exclude explanations from journal entries.) Begin with the jounal entry to establish nate 1 Debit Credit Date 2018 Apr. 1 Data Table Date Principal Amount Interest Rate Term 1 year 6 months Note (1) Apr. (2) Sep. 30 20,000 22,000 16,000 13% 5% 11% Jcurnalize the entry to establish note 2. Debit Credit Sep. 19 90 days Date 2018 Sep. 30 Accounts and Explanation PrintDone

Explanation / Answer

Solution 1:

Solution 2:

Note Date Principal Amount Interest Rate Term Due Date Maturity Value 1 1-Apr-18 $20,000.00 13% 1 year 1-Apr-19 $22,600.00 2 30-Sep-18 $22,000.00 5% 6 months 31-Mar-19 $22,550.00 3 19-Sep-18 $16,000.00 11% 90 days 18-Dec-18 $16,434.00

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