Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. 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:

1.

Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number.

2.

Journalize the entry to record the dishonor

A note receivable is dishonored when the maker of the note fails to pay the note on the due date.

of Note (3) on its due date. Refer to the Chart of Accounts for exact wording of account titles.

3.

Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Refer to the Chart of Accounts for exact wording of account titles.

4.

Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January and February. Refer to the Chart of Accounts for exact wording of account titles.

1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number.

Note

Due Date

Interest Due at Maturity

1.

selector 1

Feb. 13

Feb. 14

Feb. 11

Feb. 12

$

2.

selector 2

Apr. 22

Apr. 24

Apr. 23

Apr. 21

$

3.

selector 3

Oct. 11

Oct. 10

Oct. 12

Apr. 12

$

4.

selector 4

Nov. 7

Nov. 8

Nov. 23

Nov. 6

$

5.

selector 5

Jan. 14

Jan. 15

Jan. 31

Jan. 16

$

6.

selector 6

Feb. 7

Feb. 10

Feb. 8

Feb. 9

2. Journalize the entry to record the dishonor

A note receivable is dishonored when the maker of the note fails to pay the note on the due date.

of Note (3) on its due date. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3

Points:

3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Refer to the Chart of Accounts for exact wording of account titles.

$