Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Linstrum Company received a 60-day, 9% note for $21,500, dated July 23, from a customer on account, Required: a. Determine the due date of the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Linstrum Company received a 60-day, 9% note for $21,500, dated July 23, from a customer on account, Required: a. Determine the due date of the note b. Determine the maturity value of the note. Assume 360 days in a year. Do not round your intermediate calculations and round your final answer to the nearest dollar. c. Journalize the entry to record the receipt of the payment of the note at matunity. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debitor credit entries CNOW journals will automatically indent a credit entry when a credit amount is entered. ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 120 Accounts Receivable 129 Allowance for Doubtful Accounts EXPENSES 132 Notes Receivable 510 Cost of Merchandise Sold 520 Sales Salaries Expense 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Pavable 537 Cash Short and Over 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment 529 selling expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense LIABILITIES 210 Accounts Payable 534 Office Supplies Expense 535 Store Supplies Expense 211 Salaries Payable 213 Sales Tax Payable 536 Credit Card Expense 537 Cash Short and Over 214 Interest Payable 215 Notes Payable 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary a. Determine the due date of the note. b. Determine the maturity value of the note. Assume 360 days in a year. Do not round your intermediate calculations and round your final answer to the nearest dollar. $ Ally to record the receipt of the payment of the note at maturity. Refer to the chart of accounts for the exact wording of the account titles. CNG do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry w amount is entered JOURNAL DATE DESCRIPTION ACCOUNTING EQU 1 POST. REF DERIT CREDIT ASSETS LABILITIES 2 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Measuring Monitoring And Motivating Performance

Authors: Leslie G. Eldenburg, Susan Wolcott

1st Edition

0471205494, 978-0471205494

More Books

Students also viewed these Accounting questions

Question

How flying airoplane?

Answered: 1 week ago