At December 31, 2017, Giselle Company had a five month, 5 , $90,000 note receivable that was issued on October 1, 2017 Interest and principal are payable at maturity on March 1, 2018 (a) Prepare the December 31, 2017, adjusting entry for accrued interest (b) Prepare the January 1, 2018, reversing e...

a Dec 31 Interest Receivable 1125 Interest Revenue 1125 To accrue i ...

At December 31, 2017, Giselle Company had a five-month, 5%, $90,000 note receivable that was issued on

Question:

At December 31, 2017, Giselle Company had a five-month, 5%, $90,000 note receivable that was issued on October 1, 2017. Interest and principal are payable at on March 1, 2018.
(a) Prepare the December 31, 2017, adjusting entry for accrued interest.
(b) Prepare the January 1, 2018, reversing entry.
(c) Prepare the March 1, 2018, entry to record the receipt of cash at for the note.
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...