Notes Receivable

On September 1, 2017, Dougherty Corp. accepted a six-month, 7%, $46,800 interest-bearing note from Rozelle Company in payment of an account receivable. Dougherty's year-end is December 31. Rozelle paid the note and interest on the due date. Assume 360 days in the year.

Required:

1. Who is the maker and who is the payee of the note? The maker is Rozelle Company and the payee is Dougherty Corp. .

2. What is the maturity date of the note? March 1, 2018

Feedback

3. Identify and analyze the effect of the transactions or adjustments to be recorded on each of the following dates:

a. September 1, 2017

Activity	Operating
Accounts	Notes Receivable Increase, Accounts Receivable Decrease
Statement(s)	Balance Sheet only

Feedback

How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign.

Balance Sheet

Income Statement

Stockholders'

Net

Assets

=

Liabilities

+

Equity

Revenues

Expenses

=

Income

fill in the blank f96ff407dfdfff6_2

fill in the blank f96ff407dfdfff6_4

fill in the blank f96ff407dfdfff6_5

fill in the blank f96ff407dfdfff6_7

fill in the blank f96ff407dfdfff6_9

fill in the blank f96ff407dfdfff6_10

fill in the blank f96ff407dfdfff6_12

fill in the blank f96ff407dfdfff6_14

fill in the blank f96ff407dfdfff6_15

fill in the blank f96ff407dfdfff6_17

fill in the blank f96ff407dfdfff6_19

fill in the blank f96ff407dfdfff6_20

Feedback

b. December 31, 2017

Activity	Operating
Accounts	Interest Receivable Increase, Interest Revenue Increase
Statement(s)	Balance Sheet and Income Statement

Feedback

How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Do not round intermediate calculations. If required, round your final answer to the nearest dollar.

Balance Sheet

Income Statement

Stockholders'

Net

Assets

=

Liabilities

+

Equity

Revenues

Expenses

=

Income

fill in the blank 8b3dd303802cff8_2

fill in the blank 8b3dd303802cff8_4

fill in the blank 8b3dd303802cff8_5

fill in the blank 8b3dd303802cff8_7

fill in the blank 8b3dd303802cff8_9

fill in the blank 8b3dd303802cff8_10

Feedback

Incorrect

c. March 1, 2018

Activity	Operating
Accounts	Cash Increase, Notes Receivable Decrease, Interest Receivable Decrease, Interest Revenue Increase
Statement(s)	Balance Sheet and Income Statement

Feedback

How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Do not round intermediate calculations. If required, round your final answer to the nearest dollar.

Balance Sheet

Income Statement

Stockholders'

Net

Assets

=

Liabilities

+

Equity

Revenues

Expenses

=

Income

fill in the blank 5a12c207c012053_2

fill in the blank 5a12c207c012053_4

fill in the blank 5a12c207c012053_5

fill in the blank 5a12c207c012053_7

fill in the blank 5a12c207c012053_9

fill in the blank 5a12c207c012053_10

fill in the blank 5a12c207c012053_12

fill in the blank 5a12c207c012053_14

fill in the blank 5a12c207c012053_15

fill in the blank 5a12c207c012053_17

fill in the blank 5a12c207c012053_19

fill in the blank 5a12c207c012053_20

fill in the blank 5a12c207c012053_22

fill in the blank 5a12c207c012053_24

fill in the blank 5a12c207c012053_25

fill in the blank 5a12c207c012053_27

fill in the blank 5a12c207c012053_29

fill in the blank 5a12c207c012053_30

Feedback

Feedback