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On December 31, 2020, Tobita Company had the following balances reported on its balance sheet: Notes Receivable Interest Receivable $15,900 $86.00 The following information
On December 31, 2020, Tobita Company had the following balances reported on its balance sheet: Notes Receivable Interest Receivable $15,900 $86.00 The following information is available for the notes receivable reported on December 31, 2020. Note Customer Principal Interest Rate 1 E. Tessier $3,900 5.00% 2 R. Wolde 3,900 4.00% 3 D. Deng Total 8,100 6.00% Issue Date Nov. 1, 2020 Nov. 30, 2020 Dec. 1, 2020 Interest Term Accrued 3 months $32.50 5 months 13.00 1 year 40.50 $15,900 Total $86.00 All notes require that the interest be paid on the maturity date of the note. All amounts owing on the notes were paid on time. Tobita prepares annual adjusting entries on December 31, the company's year end. Additional transactions of 2021: Mar. 1 Oct. 30 Dec. 1 Received a $14,100, twelve-month, 5.00% note from T. Lalonde in settlement of an accounts receivable. Interest is du at maturity. Received a $3,900, three-month, 4.00% note from J. Han in settlement of an accounts receivable. Interest is due at maturity. Provided a $10,000 loan to Morgan Industriesin exchange for a two-year, 6.00% note with interest due at maturity. Interest on the note is payable each year on November 30.
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