Spring Designs Decorators issued a 180-day, 6% note for $86,200, dated April 13

Question

Spring Designs Decorators issued a 180-day, 6% note for $86,200, dated April 13 to Jaffe Furniture Company on account.

Required:

The amount that is due at the maturity or due date of a note.

A. Determine the due date of the note. B. Determine the maturity value

The amount that is due at the maturity or due date of a note.

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. C Chegg Study I G Cengage CengageNO × Levi strauss & C( ! (E) Course Schedule l-Classic Trucker -Original Trucker. | + LT X K O v2 cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take; Ch 9-3 Exercises & Problems Show Me HowCalculator Print item eBook Entries for 1. EX.09-05.BLANKSHEET Instructions Chart of Accounts Starting Questions Journal 3. EX.09-11.ALGO Starting Questions 4. EX.09-15.ALGO pany on account. A. Determine the due date of the note. 5. EX.09-18 6. EX.09-20.BLANKSHEET.AL.. B. Determine the maturity value of the note. Assume a 360-day year when calculating interest. 7. EX.09-22.BLANKSHEET AL.. Accounts for exact wording of accoun ACCOUNTING EC DATE DESCRIPTION POST, REF DEBIT ORECT ASSETS LIABIUTIE Check My Work 2 more Check My Work uses remalning Previous Next Progress: 6/7 items Assignment Score: 40.65% All work saved. Save and Exit Submit Assignment for Grading 2:50 PM 12/10/2017 20 Type here to search

Explanation / Answer

1. Maturity date = 10 October

2. Maturity value = (86200*6%*180/360)+86200 = 88786

3. Journal entry :

Date accounts & explanation debit credit apr 13 Notes receivable a/c 86200 Account receivable a/c 86200 (To record receipt of note) 10 oct Cash a/c 88786 Notes receivable a/c 86200 Interest revenue a/c 2586 (TO record receipt of payment of note)

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