Abraham Importing Company engaged in the following transactions involving promissory notes:

May 3 Sold engines to Anton Company for $60,000 in exchange for a 90-day, 12 percent promissory note.

16 Sold engines to Yu Company for $32,000 in exchange for a 60-day, 13 percent note.

31 Sold engines to Yu Company for $30,000 in exchange for a 90-day, 11 percent note.

Required 1. For each of the notes, determine the

(a) maturity date,

(b) interest on the note, and

(c) maturity value.

2. Assume that the fiscal year for Abraham Importing Company ends on June 30. How much interest income should be recorded on that date?

3. User Insight: What are the effects of the transactions in May on cash flows for the year ended June 30?

Alternate Problems Bank Reconciliation