Butternut Squash Company has the following two notes receivable at May 31, 2014, its fiscal year end:

Question:

Butternut Squash Company has the following two notes receivable at May 31, 2014, its fiscal year end:
1. $40,000 six-month, 5% note issued January 1, 2014
2. $10,000 three-month, 6% note issued April 30, 2014
Interest is payable at for both notes.
(a) Calculate the accrued interest on both notes at May 31, 2014.
(b) Prepare one adjusting journal entry to record the accrued interest on both notes.
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...