On August 31, 2010, Nancy Thompson borrowed $2,000 from Green Interstate Bank. Thompson signed a note payable,

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On August 31, 2010, Nancy Thompson borrowed $2,000 from Green Interstate Bank. Thompson signed a note payable, promising to pay the bank principal plus interest on August 31, 2011. The interest rate on the note is 10%. The accounting year of Green Interstate Bank ends on June 30, 2011. Journalize Green Interstate Banks
(a) Lending money on the note receivable at August 31, 2010,
(b) Accrual of interest at June 30, 2011,
(c) Collection of principal and interest August 31, 2011, the maturity date of 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...
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Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

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