A company received the following notes during 19X5. Notes (a), (b), and (c) were discounted on the
Question:
A company received the following notes during 19X5. Notes (a), (b), and
(c) were discounted on the dates and at the rates indicated.
\section*{Required}
As necessary in Requirements 1 through 5, identify each note by letter, compute interest using a 360-day year for those notes with terms specified in days or years, round all interest amounts to the nearest dollar, and present entries in general journal form. Explanations are not required.
1. Determine the due date and maturity value of each note.
2. For each discounted note, determine the discount and proceeds from sale of the note.
3. Journalize the discounting of notes
(a) and (b).
4. Journalize a single adjusting entry at December \(31,19 \mathrm{X} 5\), to record accrued interest revenue on notes (d), (e), and (f).
5. Journalize the collection of principal and interest on note (d).
Step by Step Answer:
Financial Accounting
ISBN: 9780133118209
2nd Edition
Authors: Charles T. Horngren, Jr. Harrison, Walter T.