Shostak showed the following details regarding its notes receivable:

Required

For each note:

a. Determine the maturity date.

b. Calculate the days of accrued interest, if any, at December 31, 2020, Shostak?s year-end.

c. Calculate the amount of accrued interest, if any, at December 31, 2020.

For Note 4:

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

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

Transcribed Image Text:

Days of Accrued Accrued Interest at Dec. 31, 2020 Interest at Dec. 31, 2020 Date of Interest Maturity Principal Term Date Note Note Rate Sept. 20/19 June 01/20 120 days 45 days 90 days 30 days 3.0% $490,000 240,000 3.5% Nov. 23/20 Dec. 18/20 3 4.5% 4.0% 164,000 120,000 4 "Round calculations to the nearest whole cent.