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Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the following
Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received the following notes: Interest Date Face Amount Rate Term 1. Jan. 14 $33,000 4% 30 days 2. Mar. 9 60,000 7 45 days 3. July 12 48,000 5 90 days 4. Aug. 23 16,000 6 75 days 5. Nov. 15 36,000 8 60 days 6. Dec. 10 24,000 6 60 days Required: 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 (1) Feb. 13 (b) Interest Due at Maturity 1,100 X 1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. (b) Interest Due Note (a) Due Date at Maturity (1) Feb. 13 $ 1,100 X (2) Apr. 23 5,250 X (3) Oct. 10 6,000 X (4) Nov. 6 2,000 X (5) Jan. 14 4,800 X (6) Feb. 8 2,400 X 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. Oct. 10 Feedback Accounts Receivable Notes Receivable Interest Revenue 36,720 X 36,000 X 720 X 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 Interest Receivable Feedback Interest Revenue 462 X 462 X 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. Jan. 14 Cash Notes Receivable Interest Receivable Interest Revenue Feb. 9 Cash 54,540 X 414 X 126 X 54,000 X Notes Receivable Interest Receivable Interest Revenue 108,360 X 48 X 312 X 108,000 X Accounting numeric field
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