Frequently, notes that are issued or received in one fiscal period do not mature until the next fiscal period. As a result, the interest expense paid or the interest income received applies to two different fiscal periods. Listed below is the information for 10 different notes. 

Instructions

On the form provided in your working papers, determine the following for each note.

1. Determine the maturity date. Assume February has 28 days.

2. Determine what portion of the interest applies to the current year and what portion of the interest applies to the following year. December 31 is the end of the fiscal period.

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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Amount $ 1,100 700 17,100 4,000 15,000 3,000 6,600 840 1,200 2,700 Issue Date December 10 November 21 October 10 December 5 November 10 September 8 November 17 October 1 December 1 August 1 Interest Rate 9% 12% 10% 15% 6.5% 7% 10% 9.5% 10% 8% Term 30 days 60 days 90 days 60 days 120 days 180 days 70 days 6 months 3 months 9 months