17.11A - Discount rates

1. EX.17.02A.Algo Instructions General Journal 2. EX.17.03A Instructions X 3. EX.17.04A.Algo Notes Receivable Discounting 1. Record the transactions in a general journal. 4. PR.17.11A. Guided. Algo When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. Marienau Suppliers had the following transactions: Mar. 1 Sold merchandise on account to G. Perez $5,500. 20 G. Perez gave a $5,500, 90-day, 6% note to extend time for payment. 30 G. Perez's note is discounted at Commerce Bank at a discount rate of 8%. Apr. 20 Received a $3,500, 60-day, 6% note from D. Larson in payment for sale of merchandise. May 5 D. Larson's note is discounted at Commerce Bank at a discount rate of 7%. June 19 D. Larson's note is dishonored. The bank bills Marienau for the maturity value of the note plus a $30 bank fee. D. Larson's dishonored note is collected; Larson pays Marienau the maturity value of the note, the $30 bank fee, and interest at 6% July 31 on the maturity value plus the bank fee. Aug. 1 Sold merchandise on account to A. Bauer $5,300. 12 A. Bauer paid $400 and gave a $4,900, 30-day, 5% note to extend time for payment. Sept. 11 A. Bauer paid $500, plus interest, and gave a new $4,400, 60-day, 6% note to extend time for payment. 26 A. Bauer's note is discounted at Commerce Bank at a discount rate of 7.5%. Nov. 10 A. Bauer's note is dishonored. The bank bills Marienau for the maturity value of the note plus a $30 bank fee. A. Bauer's dishonored note is collected. Bauer pays Marienau the maturity value of the note, the $30 bank fee, and interest at 6% on Dec. 15 the maturity value plus the bank fee. General Journal x 1. Record the transactions in a general journal. When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. Page: DATE ACCOUNT TITLE DOC. POST. NO. REF. DEBIT CREDIT 1 20-- Mar. 1 Accounts Receivable/G. Perez 5,500 1 Sales 2 5,500 3 3 4 20 Notes Receivable 5,500 4 5 Accounts Receivable/ G. Perez 5,500 5 6 6 Cash 7 30 7 8 Interest Expense 8 9 Notes Receivable 9 10 10 11 Apr. 20 Notes Receivable 11 Sales 12 12 13 13 14 May 5 Cash VI VI III II I II III II 111 II III II 14 15 Notes Receivable 15 16 Interest Revenue 16 17 17 18 June 19 Accounts Receivable/D. Larson 18 19 Cash 19 II III II III 20 20 21 July 31 Cash 21 22 Accounts Receivable/D. Larson 22 23 Interest Revenue 23 24 24 25 Aug. 1 Accounts Receivable/A. Bauer 25 Salac u Cash 19 19 20 20 21 July 31 Cash 21 Accounts Receivable/D. Larson 22 22 Interest Revenue 23 23 24 24 25 Aug. 1 Accounts Receivable/A. Bauer 25 Sales 26 26 27 27 28 12 Cash 28 Notes Receivable 29 29 30 Accounts Receivable/A. Bauer 30 31 31 32 Sept. 11 Cash 32 Notes Receivable (new note) I III II III IIII III II III I III II III IIII III II III 33 33 34 Notes Receivable (old note) 34 35 Interest Revenue 35 36 36 37 26 Cash 37 38 Notes Receivable 38 39 Interest Revenue 39 40 40 41 Nov. 10 Accounts Receivable/A. Bauer 41 42 Cash 42 43 43 44 Dec. 15 Cash 44 45 Accounts Receivable/A. Bauer 45 46 Interest Revenue 46 47 47