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Boston Truck, Inc., received the following notes during 2018: Click to view the notes received.) Read the requirements .... Requirement 1. Identifying each note by
Boston Truck, Inc., received the following notes during 2018: Click to view the notes received.) Read the requirements .... Requirement 1. Identifying each note by number, compute the total interest on each note over the note term using a 360-day year, and determine the due date and maturity value of each note. Round interest calculations to the nearest dollar. Start by determining the due date of each note, and then calculate the total interest and maturity value of each note. (Enter years as four digit numbers. Calculate total interest on each note based on the term of the note. For example, use months if the note term is expressed in months and use days if the note term is expressed in days.) Due date Note Month/Day Year Interest Maturity value (1) (2) (3) Requirement 2. Journalize a single adjusting entry on October 31, 2018, to record accrued interest revenue on all three notes. Round interest calculations to the nearest dollar. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Calculate accrued interest on each note based on the term of the note. For example, use months if the note term is expressed in months and use days if the note term is expressed in years or days. Use a 360-day year. Round intermediary and final answers to the nearest cent.) Journal Entry Date Accounts Debit Credit 2018 Oct 31 Requirement 3. For note (1), journalize the collection of principal and interest at maturity. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round amounts to the nearest dollar.) Journal Entry Date Accounts Debit Credit 2019 Oct 23 Data table Term Note (1) (2) (3) Date Oct 23 Sep 30 Oct 7 Principal Amount Interest Rate $ 13,000 10% 14,000 8% 12,000 9% 1 year 4 months 30 days
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