Copperfield and Company issued a 90-day, 6.00% note for $200,000 to a creditor on account. The previous clerk entered the following journal entries to record the note on July 10, and the payment of the note at maturity.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Jul. 10	Accounts Payable		200,000.00
2		Notes Payable			200,000.00
3		Notes Payable		212,000.00
4		Accounts Payable			200,000.00
5		Interest Expense			12,000.00

You notice that the journal entry for recording the note on July 10 is correct, but the entry for the payment of the note at maturity (including interest) did not have a date and was not correct.

Journalize the payment of the note at maturity as it should have been journalized. Dont forget to include the date. Assume a 360-day year.

Question not attempted.

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JOURNAL

ACCOUNTING EQUATION

Score: 0/37

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3

The following journal entry was made by your predecessor to record the annual payment on a 5%, 10-year installment note.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Oct. 1	Interest Expense	710	178,300.00
2		Notes Payable	215	524,262.00
3		Cash	110		702,562.00

Using the information provided, compute the following amounts.

1. What was the carrying amount (book value) of the installment note before the payment on October 1?

Points:

0 / 1

2. What portion of next years payment will be interest? (Round the amount to the nearest dollar.)