Lone Star Company received a 90 day, 6 note for $80,000, dated March 12 from a customer on account (Assume a 360 day year when calculating interest ) Required a Determine the due date of the note b Determine the maturity value of the note c Journalize the entry to record the receipt of the payment of the note at maturity Refer to the Chart of Accounts for exact wording of account titles There should be 3 rows in the Journal Chart of Accounts ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable Alan Albertson 122 Accounts Receivable Jim Dobbs 123 Accounts Receivable John Groves 124 Accounts Receivable Jan Lehn 125 Accounts Receivable Jacob Marley 126 Accounts Receivable Mr Potts 127 Accounts Receivable Chad Thomas 128 Accounts Receivable Andrew Warren 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Inventory 145 Supplies 151 Prepaid Insurance 181 Land 191 Equipment 192 Accumulated Depreciation LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense 523 Delivery Expense 524 Repairs Expense 531 Rent Expense 533 Insurance Expense 534 Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense

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Posted on Aug 01, 2024

Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account. (Assume a 360-day year when calculating interest.)

Required:

Determine the due date of the note.

Determine the maturity value of the note.

Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. * There should be 3 rows in the Journal.

Chart of Accounts ...

ASSETS
110	Cash
111	Petty Cash
121	Accounts Receivable-Alan Albertson
122	Accounts Receivable-Jim Dobbs
123	Accounts Receivable-John Groves
124	Accounts Receivable-Jan Lehn
125	Accounts Receivable-Jacob Marley
126	Accounts Receivable-Mr.Potts
127	Accounts Receivable-Chad Thomas
128	Accounts Receivable-Andrew Warren
129	Allowance for Doubtful Accounts
131	Interest Receivable
132	Notes Receivable
141	Inventory
145	Supplies
151	Prepaid Insurance
181	Land
191	Equipment
192	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
520	Salaries Expense
521	Advertising Expense
522	Depreciation Expense
523	Delivery Expense
524	Repairs Expense
531	Rent Expense
533	Insurance Expense
534	Supplies Expense
536	Credit Card Expense
537	Cash Short and Over
538	Bad Debt Expense
539	Miscellaneous Expense
710	Interest Expense