Panda Distributors showed the following information regarding its notes receivable:

Required

For each note:

a. Determine the maturity date.

b. Calculate the days of accrued interest, if any, at July 31, 2020 (Panda Distributors? year-end).

c. Calculate the amount of accrued interest, if any, at July 31, 2020.For Note 3:

d. Prepare the entry to record the accrued interest at July 31, 2020.

e. Prepare the entry to record the collection on the maturity date. Assume that both interest and principal are collected at maturity.

Transcribed Image Text:

Days of Accrued Interest at July 31, 2020 Accrued Interest at July 31, 2020 Interest Rate Maturity Date of Note Principal Term Note Date December 1/19 $170,000 5/20 20/20 10/20 4.0% 180 days 90 days 45 days 5.0% April June 71,000 4.5% 3. 64,000 85,000 "Round calculations to the nearest whole cent. July 30 days 4 5.5%