Question

Spring Designs & Decorators issued a 180-day, 6% note for $76,800, dated April 13 to Jaffe...

Spring Designs & Decorators issued a 180-day, 6% note for $76,800, dated April 13 to Jaffe Furniture Company on account.

Required:

A. Determine the due date of the note.
B. Determine the maturity value 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.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A. Due date = 13th April + 180 days = 10th October

180 days = 17 days of april + 31 may + 30 june + 31 july + 31 august + 30 sep + 10 october

B. Maturity value = Note value + Interest

Interest = (76,800 * 6%) / 2

= $2,304

  Maturity value = $76,800 + $2,304

= $79,104

C. a. Receipt of note

April 13     Notes Receivable 76800

Accounts receivable - Spring designs and decorator 76800

b. Receipt of payment of note

October 10   Cash 79104

   Interest revenue 2304

   Notes Receivable 76800

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Spring Designs & Decorators issued a 180-day, 10% note for $90,200, dated April 13 to Jaffe...
Spring Designs & Decorators issued a 180-day, 10% note for $90,200, dated April 13 to Jaffe Furniture Company on account. Required: A. Determine the due date of the note. B. Determine the maturity value 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...
Spring Designs & Decorators issued a 180-day, 5% note for $82,600, dated April 13 to Jaffe...
Spring Designs & Decorators issued a 180-day, 5% note for $82,600, dated April 13 to Jaffe Furniture Company on account. Required: A. Determine the due date of the note. B. Determine the maturity value 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...
Spring Designs Decorators issued a 180-day, 9% note for $88,400, dated April 13 to Jaffe Furniture...
Spring Designs Decorators issued a 180-day, 9% note for $88,400, dated April 13 to Jaffe Furniture Company on account. Required: A. Determine the due date of the note. B. Determine the maturity value 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...
Entries for Notes Receivable Spring Designs & Decorators issued a 120-day, 6% note for $36,000, dated...
Entries for Notes Receivable Spring Designs & Decorators issued a 120-day, 6% note for $36,000, dated April 13 to Jaffe Furniture Company on account. Assume a 360-day year when calculating interest. a. Determine the due date of the note. b. Determine the maturity value of the note. $ c1. Journalize the entry to record the receipt of the note by Jaffe Furniture. c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount...
Entries for Notes Receivable Valley Designs issued a 90-day, 6% note for $54,000, dated April 15,...
Entries for Notes Receivable Valley Designs issued a 90-day, 6% note for $54,000, dated April 15, to Bork Furniture Company on account. Assume 360 days in a year when computing the interest . a. Determine the due date of the note. July 14 b. Determine the maturity value of the note. $-------- c1. Journalize the entry to record the receipt of the note by Bork Furniture. Notes Receivable__________ Accounts Receivable-Valley Design_______ c2. Journalize the entry to record the receipt of...
Entries for Notes Receivable Valley Designs issued a 90-day, 8% note for $90,000, dated April 19,...
Entries for Notes Receivable Valley Designs issued a 90-day, 8% note for $90,000, dated April 19, to Bork Furniture Company on account. Assume 360 days in a year when computing the interest. a. Determine the due date of the note. July 18 b. Determine the maturity value of the note. $ Feedback The due date is the date the note is to be paid. Remember the interest rate is stated on an annual basis, while the term is expressed as...
Ramsey Company issues an $550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the...
Ramsey Company issues an $550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 4%. Required: A. Journalize Ramsey’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Buckner’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1....
PLEASE USE CHARTS I PROVIDED A business issued a 60-day note for $84,000 to a bank....
PLEASE USE CHARTS I PROVIDED A business issued a 60-day note for $84,000 to a bank. The note was discounted at 9%. a. Journalize the entries to record the issuance of the note on March 1. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to nearest whole dollar. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 b. Journalize the entries to record the payment...
PLEASE USE CHARTS I PROVIDED! Bennett Enterprises issues a $600,000, 90-day, 4% note to Spectrum Industries...
PLEASE USE CHARTS I PROVIDED! Bennett Enterprises issues a $600,000, 90-day, 4% note to Spectrum Industries for merchandise inventory. A. Journalize Bennett Enterprises’ entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity on April 1. Assume a 360-day year and round amounts to the nearest whole dollar. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF....
PLEASE CHARTS I PROVIDED A business issued a 120-day, 6% note for $235,000 to a creditor...
PLEASE CHARTS I PROVIDED A business issued a 120-day, 6% note for $235,000 to a creditor on account. a. Journalize the entry to record the issuance of the note on January 1. Refer to the Chart of Accounts for exact wording of account titles. Round amounts to the nearest whole dollar. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 b. Journalize the entry to record the payment of the note at maturity,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT