Question
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:
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:
| Date | Face Amount | Interest Rate | Term | ||||
| 1. | Apr. 10 | $72,000 | 4% | 60 | days | ||
| 2. | June 24 | 14,400 | 6 | 30 | days | ||
| 3. | July 1 | 63,000 | 6 | 120 | days | ||
| 4. | Oct. 31 | 63,000 | 5 | 60 | days | ||
| 5. | Nov. 15 | 54,000 | 6 | 60 | days | ||
| 6. | Dec. 27 | 180,000 | 4 | 30 | 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 | (b) Interest Due at Maturity | |
| (1) | June 9 | $fill in the blank 231810ff3fb9fba_2 | |
| (2) | June 30 | fill in the blank 231810ff3fb9fba_4 | |
| (3) | fill in the blank 231810ff3fb9fba_6 | ||
| (4) | fill in the blank 231810ff3fb9fba_8 | ||
| (5) | fill in the blank 231810ff3fb9fba_10 | ||
| (6) | fill in the blank 231810ff3fb9fba_12 | ||
Feedback
Count the number of days in each month until the total number of days is reached for the term of the note and this will be the due date. Interest is not charged on the first day of the note.
Typically, the maker of a dishonored note fails to pay the note on the due date. A company that holds a dishonored note transfers the face amount of the note plus any interest due back to an accounts receivable account. Interest revenue is not dependent on receiving the interest at this point.
Cash received will include the maturity value of the note.
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.
| fill in the blank 864fa6f77fc3023_3 | fill in the blank 864fa6f77fc3023_4 | ||
| fill in the blank 864fa6f77fc3023_6 | fill in the blank 864fa6f77fc3023_7 | ||
| fill in the blank 864fa6f77fc3023_9 | fill in the blank 864fa6f77fc3023_10 |
Feedback
Count the number of days in each month until the total number of days is reached for the term of the note and this will be the due date. Interest is not charged on the first day of the note.
Typically, the maker of a dishonored note fails to pay the note on the due date. A company that holds a dishonored note transfers the face amount of the note plus any interest due back to an accounts receivable account. Interest revenue is not dependent on receiving the interest at this point.
Cash received will include the maturity value of the note.
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 | fill in the blank 0c83e9f6506700c_2 | fill in the blank 0c83e9f6506700c_3 | |
| fill in the blank 0c83e9f6506700c_5 | fill in the blank 0c83e9f6506700c_6 |
Feedback
3. (Note 5) Calculate the number of days of interest that accrues between November 15 and December 31. Remember interest is not charged on the first day of the note. Use this to calculate: (a) Interest Rate x Face Amount = Annual Interest. (b) Annual Interest x (number of days to end of year 360 days) = interest on note to the end of the year Interest receivable is debited and interest revenue is credited. (Note 6) Calculate the number of days of interest that accrues between December 10 and December 31. Remember interest is not charged on the first day of the note. Use this to calculate: (a) Interest Rate x Face Amount = Annual Interest. (b) Annual Interest x (number of days to end of year 360 days) = interest on note to the end of the year Interest receivable is debited and interest revenue is credited.
4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. If an amount box does not require an entry, leave it blank.
| Nov. 30 | fill in the blank 479941ff9033f98_3 | fill in the blank 479941ff9033f98_4 | |
| fill in the blank 479941ff9033f98_6 | fill in the blank 479941ff9033f98_7 | ||
| fill in the blank 479941ff9033f98_9 | fill in the blank 479941ff9033f98_10 | ||
| fill in the blank 479941ff9033f98_12 | fill in the blank 479941ff9033f98_13 | ||
| fill in the blank 479941ff9033f98_16 | fill in the blank 479941ff9033f98_17 | ||
| fill in the blank 479941ff9033f98_19 | fill in the blank 479941ff9033f98_20 | ||
| fill in the blank 479941ff9033f98_22 | fill in the blank 479941ff9033f98_23 | ||
| fill in the blank 479941ff9033f98_25 | fill in the blank 479941ff9033f98_26 |
Petty Cash Fund
Journalize the necessary entries for each of the following:
a. Issued a check to establish a petty cash fund of $550. If an amount box does not require an entry, leave it blank.
| fill in the blank c5de2404cf92079_2 | fill in the blank c5de2404cf92079_3 | ||
| fill in the blank c5de2404cf92079_5 | fill in the blank c5de2404cf92079_6 |
b. The amount of cash in the petty cash fund is $180. Issued a check to replenish the fund, based on the following summary of petty cash receipts: store supplies, $217 and miscellaneous selling expense, $137. Record any missing funds in the cash short and over account. If an amount box does not require an entry, leave it blank.
| fill in the blank 977582fbff8afea_2 | fill in the blank 977582fbff8afea_3 | ||
| fill in the blank 977582fbff8afea_5 | fill in the blank 977582fbff8afea_6 | ||
| fill in the blank 977582fbff8afea_8 | fill in the blank 977582fbff8afea_9 | ||
| fill in the blank 977582fbff8afea_11 | fill in the blank 977582fbff8afea_12 |
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Public Sector Accounting And Budgeting For Non-Specialists
Authors: G. Jan Van Helden, Ron Hodges
1st Edition
1137376988, 9781137376985
