Homework: Week 5 - Chapter 08 problems Score: 0.58 of 1 pt & P9-31A (similar to)
ID: 2432319 • Letter: H
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Homework: Week 5 - Chapter 08 problems Score: 0.58 of 1 pt & P9-31A (similar to) 4 of 7 (6 complete) HW Score: 79 21%, 5 54 of 7 pts Question Help Christie Realty loaned money and received the following notes during 2016 (Click the icon to view the notes received.) Requirements 1. Determine the maturity date and maturity value of each note 2. Journalize the entries to establish each Note Receivable. include a single adjusting entry on December 31, 2016, the fiscal year end, to record accrued interest revenue on any applicable note. Explanations are not required 3. Journalize the collection of principal and interest at maturty on the three notes. Explanations are not required. 18,000 Jun 19 Cash interest revenue on any applicable notels) on December 31, 2016, the fiscal year end. Jourmalize the single adjusting entry to record accrued Accounts and Explanation Debit Date 2,010 2016 Interest Receivable 2,010 Dec 31 Interest Revenue Requirement 3. Jounaize the colection of principal and interest at maturity on the three notes. Explanations are not Exdude explanations from journal entries) required (Record debits first then credts Journalize the collection of principal and interest at maturity for note (1) Debit Credit Accounts and Explanation Date 2017 Cash Oct. 1Interest Receivable 12,840 210 630 12,000 Interest Revenue Note Receivable (Note t) Joumalize the collection of principal and interest at maturity for note (2) Debit Accounts and Explanation Date 2017 Cash Mar. 30 Interest Receivable 21800 nterest Revenue 20000 Note Recevable (Note 2) Choose from any list or enter any number in the input fields and then click Check Answer Check Anower Clear All remainingExplanation / Answer
Answer 1 Answer 2 Determination of Maturity Dates of notes Journal entries Note Issue date Maturity date Date Account Titles Debit Credit 1 Oct.1,2016 30th Sep.2017 June,19,2016 Note Receivables (Note 3) $18,000.00 2 June 30,2016 31st March,2017 Cash $18,000.00 3 June 19,2016 16th Dec.2016 June,30,2019 Note Receivables (Note 2) $20,000.00 Working Cash $20,000.00 Calculation of interest accrued on Dec.31,2016 Note Calculation Interest accrued Oct.1,2019 Note Receivables (Note 1) $12,000.00 1 =[$12000*7%/12]*3 $210.00 Cash $12,000.00 2 =[$20000*18%/12]*6 $1,800.00 3 $0.00 Adjusting Journal entries Interest accrued on Dec.31,2016 $2,010.00 Date Account Titles Debit Credit Dec.31,2016 Interest Receivables $2,010.00 Interest revenue on Note 3 for 2016 Interest Revenue $2,010.00 = [$18000 * 8% / 366 days] * 180 days = $708 Answer 3 Interest revenue on Note 1 for 2017 Journal entries on collection of note =[$12000*7%/12]*9 = $630 Date Account Titles Debit Credit 17th Dec.2016 Cash $18,708.00 Interest revenue on Note 2 for 2017 Note Receivables (Note 3) $18,000.00 =[$20000*18%/12]*3 = $900 Interest Revenue $708.00 Oct.1,2017 Cash $12,840.00 Note Receivables (Note 1) $12,000.00 Interest Receivables $210.00 Interest revenue $630.00 1st April ,2017 Cash $22,700.00 Note Receivables (Note 2) $20,000.00 Interest Receivables $1,800.00 Interest revenue $900.00
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