Question
Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current year ending December 31, Gen-X Ads received the following
Details of Notes Receivable and Related Entries
Gen-X Ads Co. produces advertising videos. During the current year ending December 31, Gen-X Ads received the following notes:
Date | Face Amount | Term | Interest Rate | |||||
1. | Jan. 14 | $33,000 | 30 | days | 4 | % | ||
2. | Mar. 9 | 60,000 | 45 | days | 7 | |||
3. | July 12 | 48,000 | 90 | days | 5 | |||
4. | Aug. 23 | 16,000 | 75 | days | 6 | |||
5. | Nov. 15 | 36,000 | 60 | days | 8 | |||
6. | Dec. 10 | 24,000 | 60 | days | 6 |
Required:
Question Content Area
Assume 360 days in a year.
1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number.
Note | (a) Due Date | (b) Interest Due at Maturity | ||
(1) | Feb. 11Feb. 12Feb. 13 | $fill in the blank 6c555aff706df9c_2 | ||
(2) | Apr. 21Apr. 22Apr. 23 | fill in the blank 6c555aff706df9c_4 | ||
(3) | Oct. 10Oct. 11Oct. 12 | fill in the blank 6c555aff706df9c_6 | ||
(4) | Nov. 6Nov. 7Nov. 8 | fill in the blank 6c555aff706df9c_8 | ||
(5) | Jan. 14Jan. 15Jan. 16 | fill in the blank 6c555aff706df9c_10 | ||
(6) | Feb. 7Feb. 8Feb. 9 | fill in the blank 6c555aff706df9c_12 |
Question Content Area
2. Journalize the entry to record the dishonor of Note (3) on its due date. If an amount box does not require an entry, leave it blank.
blank | Accounts ReceivableBad Debt ExpenseCashInterest RevenueNotes Receivable | - Select - | - Select - |
Accounts ReceivableAllowance for Doubtful AccountsCashInterest ReceivableNotes Receivable | - Select - | - Select - | |
Accounts ReceivableCashInterest PayableInterest RevenueUnearned Interest | - Select - | - Select - |
Question Content Area
3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. If an amount box does not require an entry, leave it blank.
Dec. 31 | Accounts ReceivableCashInterest ReceivableInterest RevenueUnearned Interest | - Select - | - Select - |
Accounts ReceivableCashInterest ReceivableInterest RevenueNotes Receivable | - Select - | - Select - |
Question Content Area
4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January and February. If an amount box does not require an entry, leave it blank.
Note 5 | Accounts ReceivableCashInterest ReceivableInterest RevenueNotes PayableNotes Receivable | - Select - | - Select - |
Accounts ReceivableBad Debt ExpenseCashNotes PayableNotes ReceivableUnearned Interest | - Select - | - Select - | |
Accounts ReceivableAllowance for Doubtful AccountsCashInterest ExpenseInterest PayableInterest Receivable | - Select - | - Select - | |
Accounts PayableAccounts ReceivableCashInterest ExpenseInterest RevenueUnearned Interest | - Select - | - Select - | |
Note 6 | Accounts ReceivableCashInterest ReceivableInterest RevenueNotes PayableNotes Receivable | - Select - | - Select - |
Accounts PayableAccounts ReceivableBad Debt ExpenseCashNotes PayableNotes Receivable | - Select - | - Select - | |
Accounts ReceivableAllowance for Doubtful AccountsCashInterest ExpenseInterest PayableInterest Receivable | - Select - | - Select - | |
Accounts ReceivableAllowance for Doubtful AccountsCashInterest ExpenseInterest RevenueUnearned Interest | - Select - | - Select - |
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