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P8-22A Correcting internal control weakness

Each of the following situations has an internal control weakness.

a. Upside-Down Applications develops custom programs to customers specifications.

Recently, development of a new program stopped while the programmers

redesigned Upside-Downs accounting system. Upside-Downs accountants

could have performed this task.

b. Norma Rottler has been your trusted employee for 24 years. She performs all

cash-handling and accounting duties. Ms. Rottler just purchased a new Lexus

and a new home in an expensive suburb. As owner of the company, you wonder

how she can afford these luxuries because you pay her only $30,000 a year and

she has no source of outside income.

c. Izzie Hardwoods, a private company, falsified sales and inventory figures in

order to get an important loan. The loan went through, but Izzie later went

bankrupt and could not repay the bank.

d. The office supply company where Pet Grooming Goods purchases sales

receipts recently notified Pet Grooming Goods that its documents were not

pre-numbered. Howard Mustro, the owner, replied that he never uses receipt

numbers.

e. Discount stores such as Cusco make most of their sales in cash, with the

remainder in credit card sales. To reduce expenses, one store manager ceases

purchasing fidelity bonds on the cashier.

f. Cornelius Corndogs keeps all cash receipts in an empty box for a week because he

likes to go to the bank on Tuesdays when Joann is working.

Requirements

1. Identify the missing internal control characteristics in each situation.

2. Identify the possible problem caused by each control weakness.

3. Propose a solution to each internal control problem.

Learning Objective 2

Requirement 1 Missing Internal Control Characteristic a. b. c. d. e. f. Requirement 2 Possible Problem Requirement 3 Solution DUNLAP INSURANCE Bank Reconciliation December 31, 2015 BANK Balance, December 31, 2015 ADD: Deposit in transit BOOK Balance, December 31, 2015 ADD: EFT collection on rent Bank collection of note LESS: Outstanding checks Check 1420 Check 1421 Check 1422 LESS: Correction of book error NSF check EFT - insurance payment Service charge Adjusted bank balance, December 31, 2015 Adjusted book balance, December 31, 2015 Date Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Accounts and Explanation Debit Credit Requirement 1 Date Accounts and Explanation Debit Credit 2014 Dec. 28 Dec. 31 1 - 30 Days Accounts Receivable $97,000 Percent uncollectible 0.3% Estimated total uncollectible remember to do your estimated total uncollectible calculations 31 - 60 Days $37,000 3.0% Age of Accounts Receivable 61 - 90 Days $14,000 30.0% Over 90 Days $17,000 35.0% Total Receivables $165,000 Requirement 2 Allowance for Bad Debts 3,500 9/30 Bal wrote off 12/28 Bal Bad debt expense 12/31 Bal MOUNTAIN TERRACE MEDICAL CENTER Balance SheetPartial December 31, 2014 Assets Current Assets: Accounts Receivable Less: Allowance for Bad Debts lnternal Controi and Cash 535 P8-24A Accounting for petty cash transactions Learning Objective 4 Suppose that on June l, Rockin G',rations, a disc jockey creafes a petq. Michael Marteli, fund cash fund with en imprest halance of $500. During J 2. lune 30, Cash CR $175 cu.stodian, signs the foliowing^petq, cash tickets: Petty Cash Ticket Number Amount 1 Postage for package 2 Office party 3 Two boxes ofstationert 4 Printer 5 25 i cartridges Business $20 dinner On June 30, prior to of$325. The accounrs affecred ! 35 / 15 75 ,,' the fund contains drese tickensplus cash pctry cash paymcnts are Office Supplies, .Entertarnment Expense, and E;pense. Requirements 1. CrnJune3t),'now caih ihotila tnrs petty cain fun& nrit&'ne?ore it rs replenishe& 2. Joumalize all entrics ro (a) create the fund and (b) replenish it. lnclude enplanations. 3. Make the entry, July 1 to insrease the fund balance to $550. Include an exoJanation- P8-254 a bankreconciliation and jounal entries Learning Objective 5 The I)ecember cash records ol Dunlap Insurance follow: 1. Adjusted Balance $16,230 Cash Payments Cash Receipts Cash Debit Check No- Gash Crcdit $ Dec.4 $ 4170 1416 I 5ro 1417 14 530 1418 f)1i-l 17 2,'180 1419 1,494 r, 1rr51, 31 lf,so 'tBt 860 1-?O ilk: ^r,rr;* t42I 1422 \\tt\\t' guo 630 Horngren's Accounting, The Financial Chapters, Tenth Edition, by Tracie Nobles, Brenda Mattison, and Ella Mae Matsumura. Published by Prentice Hali. 536 chapter I Dunlap's Cash account shows a balance of $16,740 at December 31. On December 3l , Dunlap Insurance received rhe Following bank statement: Sant Sfaremenf for-0eremher $ 't3,600 Beginning Baianre Deposits and other Credits: Dec. Dec- 5 Dec. 10 Dec. 15 Dec. 18 DPJi-. )2- 'LL 1 $ 3oo 4,170 510 530 2,140 1.lntt l.toO strcrr Checks and other Debits: Dec. 8 rfuc. f I tLrktt no. f4f6l Dec. 19 Dec. 22 (check no.1417) Dec- 29(checkno.1418) Dec. 3l (check no. 1419) Dec. 31 )md 1,(n0 af,t 700 '130 650 r,940 (5,340) 60 $ 17J50 Ending Balance Explanatiom: BC-bank co[ection; EFr-ehctsonk funds rransfur; NsFflonsufficient funds checks; SC-*eMce durge Ad&tiond daa for the bank reconciliation follows: a- Thr-EFT oe.rfir-wasa-rr.r:ei4r-of rror-Thr-EFT drlrjrwasan-iasrraanEqargmEnt-. b. The NSF checkwas rcceived from a customerc. The $1,400 bankcollection was for a note receivable. d- The correct amount of checl 1419, fur rent erpenre, is $1,940. Dunlap's controller misakenty recorded the check for $1,490. Rcquilemnts f . Prcpare the bank reconciliation of Dunlap [nsurance at December 31,2015. 2. rlrurm6,Uraryrra1uuit:d.enelier,{rom ehr.hanlr.reronailhaiat J owrqc"l tu aly rcqwrcd q,tlrv; .;S4,4*L +kt- VarnV r (- Utt\\alnfi,,n tlomgle,ab Aeountiog, The Financial Chapfers, Tenth Edition, by Tracie Nobks, Brenda fulatison, and Elh Mae Matsumura. Published by Ptentice Hall. Receivables 593 > Wrqlk&*sx&s Group A W-27 A Accounting for uncollectible essonots using the allowance (percent^nd dirrt urile.-off-methods' and -eporriqgrere.isahles oo rhe Learning Obiectives 1, 2, 3 1 On August 31, Scctrmrs 14, Daisy Floral Supply had a $155,000 ':nd.':. $/t ,]QfJ c'rc{jt LrJcnct-;n. During September, . . . .Sales bai'ance . Bod Debts Expense $ 1 7,700 in r,-- D^l n-L*t{rl trdu ulutt. made Ignore Cost on account, Collections on accoun -!7rite-offs of ,000. ,s7 of uncollectible Requfuments 1" Journalize ali September entries method. Bad debts expense all September activity in Accounts I)ehts Expense (post to these rhe allouant:e was estimated at 3olo of credit Receivable, Allowance fbr Bad T:accounts). 2. Usingthe same frcts, that Dais'l'used 'receivables- Journalize account for d,ircctwriu-aff to Accnunts ar Seprember 30,2014. and sholv their 3. Whatamountof lncome matches 4. \\Fhat 30,2014, realistic? direct write-off method to entries using the Bad Debx Expense Debts Expeose would Daisy report under each of the two methods? \\(hich with revenue? Gir.e your reason. Septemher beter of arraccounrs rrceivable would Daisy report on fts September sheer under each of the rwo methods? \\(&ich amounr is more ve.vour reason. P9-2SA Accounting for uncollectible accounts using the allowance method (aging-of-receivables), and reporting receivables on the balance sheet At Seprernbrr 30, ?0 14. rhe accounm of h{ounrain ftrrace Medicai Center (M'TMC) inciude the tirllowing: Accoun8 Reeivable 31 $ 1 1,551 3,500 Duri4g dre last qrnrrr of 2014 MTMC complemd dre friloriliag 28 2. Ailowance CR Bal. at Dec. 31, 2014 $ 14s,m0 Allowance for Bad Debts (credit balance) Dec. Learning Objective 3 #md ranstions; Wrote of{ accounts receivable as uncollectible: Regan, Co., 11,300; Oren Mac, $900; and Rain, lnc., $700 Recorded bad debts expense based on the aging d, retnntctrtct*ri&]e, rs{nllnrtrs- Homgren's Aciounting. The Financtai Cftaplers, Tenlh Edition, by Tracie Nobles. Brenda Mattison, and Elia Mae Matsumura. Publisheo by Prentice t-iall 594 chapter 9 Age ot Accounts I o. Days Accounts Receivable l-30 Dap 31-60 Days J161II00 sq.7,{)0o JL3.7,$n0 $r4,fi00 51.7,OO0 0.3o/o 304 30% 35o/o Estimated percent uncollectible 61-90 Over 90 Days d UJ leqmm.utu l. Joumalize the transactions. F o- I U 2. 3. Learning Obiectives 1, 3 Open the Allowance for Bad Debrs T-account, andpost entries affecdng that account. Keep a runaing balance. Show hou, Mountain Terace Me&cal Center should report net accounts receivable on its Decem*r 31,20l4,.balance sheet. P9-29A method reporting receivables on the balance sheet 3.NetAR$119,800 the following 2013 and.2}14: 2013 Dec.3l of $4 3I that bad debts expense for the year was 2 and recorded that amount as enty for bad debts expense. Made the 2014 Jan. 17 to Malcolm Sold merchandise $700, on account. lgnore cost tf''gR dr"'drU. Wrote off Makolm collect from him. Jun. 29 Aug. 6 uncollectible after repeated efforts to t(ecerVeo'f,r-lllt'rom &fattotin so late. Reinstated Monetb Dec.31 nn, Kcm qr*,. !, fiffU, Estimated that bad $460.000 and 3l tollowing accounts as uncollectible: Made a compound entry R.ri 3'f atbng wrnl a tbtter apobgrzrhg rbr berhg full and recorded the cash receipt, fifaob ttie \\dilfarrrl,!' u expense for the d, Bcn dC, Bichtcr,. $4nR . 2% on credh sales of the expense. for 6ao'obdB expense. Requirements l. OpenT:acrbunts forAllowance for Bad Debts and Bad S-xpense.IGep running balances, assuming all accounts begin with a zero balarr\\c. 2. Recordthe transafiions in rhegeneral,iournal, andpost to the two Tlaccounts. ( 3. fuspriie the December 31,2014, balance ofAccounts Receivable is $135,000. SKow how net accounts receivable would be reponed on the balance sheet at tbx-rl;.rr-.- Honlgiren's Acromling, The Finarnia, Chapfers, Tenlfi Edition, by Tracie Nobles. Brenda Matlison, and Ella Mae Matsumura. Published by Prentice Hal,. Receivables 595 eccorcdngfor rucollectihle accounts (aqing'of-eceivahles asethod)" P9- 3OA t-earning Ohlerti'.cs t, :1, 4 credit cand sale$ notes receivable, and accrued interest revenue Relaxing Recliner Chairs completed the following selected ransactions: .l Jul. I il +l Sold merchandise inventory to Great Mart, receiving a $45,000, 1104, Oct Dec, 31, 2013--lnterest Receivable $2,700 3, rrUrt-IEncnt'.eti.t , ER dr'lfJrJ. Recorded credit and debit card sales for the period of S21 ml (Use the gross -l method.) .ol r\\tn: J (anf tm.n-rssu-uladl*f Dec. 31 Made an adjusting entry to accrue interest on the rr.rmparry f trltdrirg: arrrrurrf based on an aging o{ accounr recervdtite.'l ne agtng scneotite receivable will not be collected. Prior to this Allowance for Bad Debts is $ 1 1 ,600. a'$t Apr. 1 Sold merchandise inventoryto lor 513,000. lgnore cost ot Aug.22 Ambiance Corp. maturity value of the Nov. Dec. 16 5 31 Loaned $21,000 cash o'r accourir the credit balance in Corp., receiving a 60-day, 97o note sold. its note at maturity; the business converted the 'to an account receivable. Creed, lnc. receiving a 90-day, 8olo note. from Ambiance, Corp. Collected in full on Accruedthe 115,2.[, Mart note. Collected the maturity value of the 23 I Mart note. Made an adjusting entry to record bad debts 31 Jun. rteuf f,4fO. on the Creed, lnc. note. in the journal of Relaxing Recliner Chairs. F-rylanadons (For notes stated in days, use a 360iay yar. Round to the nearest Record *re are not do[hr.) P9-3fA for notes rcceivable and accruing intcrest '(dlry'trdrrytnrrnrh muuqy art rwurrrtlrtre l,.earning Objective 4 ftflruwnrg mrrcs {rurrng Zt'r4. 1 Note Date Principal (1) Aug.l (2) Nov. 30 18,000 tttf-.nrg ,iYm I 6Yo or2n n, 13) . Note 3-Jan. 18, 2015 Amount lntercst Rate $ 24,000 17o/o year 6 months ?O{ag' Requirements l. Determine the maturity date and maturity value of each note. 2. Journalize the entry to record the inception of each of the three notes and also joumalize a single adusting entry at December 37,2014, the fucal year-end, to on all three notes- F"xplanations are nor requfucd- recorrd accnrcd interest revenue 3- Joumalize the collection of principal and interest at maturity of all three notes. Eplanations are not reguired. Homgea's Amunting, The Fimncial Chapters, Tenlh Edilinn, byTracie Nobhs, Benda Matison, and Ella Mae Matsumura. Published by Prentice Hall. Principal Note 1 Note 2 Note 3 Interest Rate Interest Period Interest Revenue Earned Maturity Value (P + I) Maturity Date Aug. 1, 2015 30-May-15 Jan. 18, 2015 Date 2014 Aug. 1 Nov. 30 Dec. 19 Dec. 31 Accounts and Explanation Debit Credit Date 2015 Jan. 18 30-May Aug. 1 Accounts and Explanation Debit Credit lnternal Controi and Cash 535 P8-24A Accounting for petty cash transactions Learning Objective 4 Suppose that on June l, Rockin G',rations, a disc jockey creafes a petq. Michael Marteli, fund cash fund with en imprest halance of $500. During J 2. lune 30, Cash CR $175 cu.stodian, signs the foliowing^petq, cash tickets: Petty Cash Ticket Number Amount 1 Postage for package 2 Office party 3 Two boxes ofstationert 4 Printer 5 25 i cartridges Business $20 dinner On June 30, prior to of$325. The accounrs affecred ! 35 / 15 75 ,,' the fund contains drese tickensplus cash pctry cash paymcnts are Office Supplies, .Entertarnment Expense, and E;pense. Requirements 1. CrnJune3t),'now caih ihotila tnrs petty cain fun& nrit&'ne?ore it rs replenishe& 2. Joumalize all entrics ro (a) create the fund and (b) replenish it. lnclude enplanations. 3. Make the entry, July 1 to insrease the fund balance to $550. Include an exoJanation- P8-254 a bankreconciliation and jounal entries Learning Objective 5 The I)ecember cash records ol Dunlap Insurance follow: 1. Adjusted Balance $16,230 Cash Payments Cash Receipts Cash Debit Check No- Gash Crcdit $ Dec.4 $ 4170 1416 I 5ro 1417 14 530 1418 f)1i-l 17 2,'180 1419 1,494 r, 1rr51, 31 lf,so 'tBt 860 1-?O ilk: ^r,rr;* t42I 1422 \\tt\\t' guo 630 Horngren's Accounting, The Financial Chapters, Tenth Edition, by Tracie Nobles, Brenda Mattison, and Ella Mae Matsumura. Published by Prentice Hali. 536 chapter I Dunlap's Cash account shows a balance of $16,740 at December 31. On December 3l , Dunlap Insurance received rhe Following bank statement: Sant Sfaremenf for-0eremher $ 't3,600 Beginning Baianre Deposits and other Credits: Dec. Dec- 5 Dec. 10 Dec. 15 Dec. 18 DPJi-. )2- 'LL 1 $ 3oo 4,170 510 530 2,140 1.lntt l.toO strcrr Checks and other Debits: Dec. 8 rfuc. f I tLrktt no. f4f6l Dec. 19 Dec. 22 (check no.1417) Dec- 29(checkno.1418) Dec. 3l (check no. 1419) Dec. 31 )md 1,(n0 af,t 700 '130 650 r,940 (5,340) 60 $ 17J50 Ending Balance Explanatiom: BC-bank co[ection; EFr-ehctsonk funds rransfur; NsFflonsufficient funds checks; SC-*eMce durge Ad&tiond daa for the bank reconciliation follows: a- Thr-EFT oe.rfir-wasa-rr.r:ei4r-of rror-Thr-EFT drlrjrwasan-iasrraanEqargmEnt-. b. The NSF checkwas rcceived from a customerc. The $1,400 bankcollection was for a note receivable. d- The correct amount of checl 1419, fur rent erpenre, is $1,940. Dunlap's controller misakenty recorded the check for $1,490. Rcquilemnts f . Prcpare the bank reconciliation of Dunlap [nsurance at December 31,2015. 2. rlrurm6,Uraryrra1uuit:d.enelier,{rom ehr.hanlr.reronailhaiat J owrqc"l tu aly rcqwrcd q,tlrv; .;S4,4*L +kt- VarnV r (- Utt\\alnfi,,n tlomgle,ab Aeountiog, The Financial Chapfers, Tenth Edition, by Tracie Nobks, Brenda fulatison, and Elh Mae Matsumura. Published by Ptentice Hall. Receivables 593 > Wrqlk&*sx&s Group A W-27 A Accounting for uncollectible essonots using the allowance (percent^nd dirrt urile.-off-methods' and -eporriqgrere.isahles oo rhe Learning Obiectives 1, 2, 3 1 On August 31, Scctrmrs 14, Daisy Floral Supply had a $155,000 ':nd.':. $/t ,]QfJ c'rc{jt LrJcnct-;n. During September, . . . .Sales bai'ance . Bod Debts Expense $ 1 7,700 in r,-- D^l n-L*t{rl trdu ulutt. made Ignore Cost on account, Collections on accoun -!7rite-offs of ,000. ,s7 of uncollectible Requfuments 1" Journalize ali September entries method. Bad debts expense all September activity in Accounts I)ehts Expense (post to these rhe allouant:e was estimated at 3olo of credit Receivable, Allowance fbr Bad T:accounts). 2. Usingthe same frcts, that Dais'l'used 'receivables- Journalize account for d,ircctwriu-aff to Accnunts ar Seprember 30,2014. and sholv their 3. Whatamountof lncome matches 4. \\Fhat 30,2014, realistic? direct write-off method to entries using the Bad Debx Expense Debts Expeose would Daisy report under each of the two methods? \\(hich with revenue? Gir.e your reason. Septemher beter of arraccounrs rrceivable would Daisy report on fts September sheer under each of the rwo methods? \\(&ich amounr is more ve.vour reason. P9-2SA Accounting for uncollectible accounts using the allowance method (aging-of-receivables), and reporting receivables on the balance sheet At Seprernbrr 30, ?0 14. rhe accounm of h{ounrain ftrrace Medicai Center (M'TMC) inciude the tirllowing: Accoun8 Reeivable 31 $ 1 1,551 3,500 Duri4g dre last qrnrrr of 2014 MTMC complemd dre friloriliag 28 2. Ailowance CR Bal. at Dec. 31, 2014 $ 14s,m0 Allowance for Bad Debts (credit balance) Dec. Learning Objective 3 #md ranstions; Wrote of{ accounts receivable as uncollectible: Regan, Co., 11,300; Oren Mac, $900; and Rain, lnc., $700 Recorded bad debts expense based on the aging d, retnntctrtct*ri&]e, rs{nllnrtrs- Homgren's Aciounting. The Financtai Cftaplers, Tenlh Edition, by Tracie Nobles. Brenda Mattison, and Elia Mae Matsumura. Publisheo by Prentice t-iall 594 chapter 9 Age ot Accounts I o. Days Accounts Receivable l-30 Dap 31-60 Days J161II00 sq.7,{)0o JL3.7,$n0 $r4,fi00 51.7,OO0 0.3o/o 304 30% 35o/o Estimated percent uncollectible 61-90 Over 90 Days d UJ leqmm.utu l. Joumalize the transactions. F o- I U 2. 3. Learning Obiectives 1, 3 Open the Allowance for Bad Debrs T-account, andpost entries affecdng that account. Keep a runaing balance. Show hou, Mountain Terace Me&cal Center should report net accounts receivable on its Decem*r 31,20l4,.balance sheet. P9-29A method reporting receivables on the balance sheet 3.NetAR$119,800 the following 2013 and.2}14: 2013 Dec.3l of $4 3I that bad debts expense for the year was 2 and recorded that amount as enty for bad debts expense. Made the 2014 Jan. 17 to Malcolm Sold merchandise $700, on account. lgnore cost tf''gR dr"'drU. Wrote off Makolm collect from him. Jun. 29 Aug. 6 uncollectible after repeated efforts to t(ecerVeo'f,r-lllt'rom &fattotin so late. Reinstated Monetb Dec.31 nn, Kcm qr*,. !, fiffU, Estimated that bad $460.000 and 3l tollowing accounts as uncollectible: Made a compound entry R.ri 3'f atbng wrnl a tbtter apobgrzrhg rbr berhg full and recorded the cash receipt, fifaob ttie \\dilfarrrl,!' u expense for the d, Bcn dC, Bichtcr,. $4nR . 2% on credh sales of the expense. for 6ao'obdB expense. Requirements l. OpenT:acrbunts forAllowance for Bad Debts and Bad S-xpense.IGep running balances, assuming all accounts begin with a zero balarr\\c. 2. Recordthe transafiions in rhegeneral,iournal, andpost to the two Tlaccounts. ( 3. fuspriie the December 31,2014, balance ofAccounts Receivable is $135,000. SKow how net accounts receivable would be reponed on the balance sheet at tbx-rl;.rr-.- Honlgiren's Acromling, The Finarnia, Chapfers, Tenlfi Edition, by Tracie Nobles. Brenda Matlison, and Ella Mae Matsumura. Published by Prentice Hal,. Receivables 595 eccorcdngfor rucollectihle accounts (aqing'of-eceivahles asethod)" P9- 3OA t-earning Ohlerti'.cs t, :1, 4 credit cand sale$ notes receivable, and accrued interest revenue Relaxing Recliner Chairs completed the following selected ransactions: .l Jul. I il +l Sold merchandise inventory to Great Mart, receiving a $45,000, 1104, Oct Dec, 31, 2013--lnterest Receivable $2,700 3, rrUrt-IEncnt'.eti.t , ER dr'lfJrJ. Recorded credit and debit card sales for the period of S21 ml (Use the gross -l method.) .ol r\\tn: J (anf tm.n-rssu-uladl*f Dec. 31 Made an adjusting entry to accrue interest on the rr.rmparry f trltdrirg: arrrrurrf based on an aging o{ accounr recervdtite.'l ne agtng scneotite receivable will not be collected. Prior to this Allowance for Bad Debts is $ 1 1 ,600. a'$t Apr. 1 Sold merchandise inventoryto lor 513,000. lgnore cost ot Aug.22 Ambiance Corp. maturity value of the Nov. Dec. 16 5 31 Loaned $21,000 cash o'r accourir the credit balance in Corp., receiving a 60-day, 97o note sold. its note at maturity; the business converted the 'to an account receivable. Creed, lnc. receiving a 90-day, 8olo note. from Ambiance, Corp. Collected in full on Accruedthe 115,2.[, Mart note. Collected the maturity value of the 23 I Mart note. Made an adjusting entry to record bad debts 31 Jun. rteuf f,4fO. on the Creed, lnc. note. in the journal of Relaxing Recliner Chairs. F-rylanadons (For notes stated in days, use a 360iay yar. Round to the nearest Record *re are not do[hr.) P9-3fA for notes rcceivable and accruing intcrest '(dlry'trdrrytnrrnrh muuqy art rwurrrtlrtre l,.earning Objective 4 ftflruwnrg mrrcs {rurrng Zt'r4. 1 Note Date Principal (1) Aug.l (2) Nov. 30 18,000 tttf-.nrg ,iYm I 6Yo or2n n, 13) . Note 3-Jan. 18, 2015 Amount lntercst Rate $ 24,000 17o/o year 6 months ?O{ag' Requirements l. Determine the maturity date and maturity value of each note. 2. Journalize the entry to record the inception of each of the three notes and also joumalize a single adusting entry at December 37,2014, the fucal year-end, to on all three notes- F"xplanations are nor requfucd- recorrd accnrcd interest revenue 3- Joumalize the collection of principal and interest at maturity of all three notes. Eplanations are not reguired. Homgea's Amunting, The Fimncial Chapters, Tenlh Edilinn, byTracie Nobhs, Benda Matison, and Ella Mae Matsumura. Published by Prentice Hall