Show Me How Details of Notes Receivable and Related Entries Gen X Ads Co produces advertising videos During the current fiscal year, Gen X Ads Co received the following notes Date Face Amount Interest Rate Term 1 Apr 10 $78,000 4 60 days 2 June 24 18,000 6 30 days 3 July 1 72,000 6 120 days 4 Oct 31 72,000 5 60 days 5 Nov 15 90,000 6 60 days 6 Dec 27 144,000 4 30 days Required Assume 360 days in a year 1 Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number Note (a) Due Date (b) Interest Due at Maturity (1) Apr 14Apr 30June 9June 10 $fill in the blank c38a13088006ff9 2 (2) June 24June 30July 24July 25 fill in the blank c38a13088006ff9 4 (3) July 1July 31Oct 28Oct 29 fill in the blank c38a13088006ff9 6 (4) Oct 31Dec 21Dec 30Dec 31 fill in the blank c38a13088006ff9 8 (5) Nov 16Nov 30Jan 14June 15 fill in the blank c38a13088006ff9 10 (6) July 21Jan 26Jan 27Jan 31 fill in the blank c38a13088006ff9 12 2 Journalize the entry to record the dishonor of Note (3) on its due date If an amount box does not require an entry, leave it blank or enter 0 Jul 1Jul 31Oct 28Oct 29 Accounts PayableAccounts ReceivableBad Debt ExpenseCashInterest ReceivableNotes Receivable Select Select Accounts ReceivableBad Debt ExpenseCashInterest ReceivableNotes PayableNotes Receivable Select Select Accounts ReceivableBad Debt ExpenseCashInterest ReceivableInterest RevenueSales Select Select 3 Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31 Dec 31 CashInterest PayableInterest ReceivableInterest RevenueNotes ReceivableUnearned Interest Select CashInterest PayableInterest ReceivableInterest RevenueNotes ReceivableUnearned Interest Select 4 Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January If an amount box does not require an entry, leave it blank or enter 0 Jan 14 Accounts PayableAccounts ReceivableCashInterest ReceivableInterest RevenueNotes Receivable Select Select Accounts PayableAccounts ReceivableCashInterest ExpenseNotes ReceivableSales Select Select Accounts ReceivableAllowance for Doubtful AccountsCashInterest PayableInterest ReceivableNotes Payable Select Select Accounts ReceivableCashInterest PayableInterest RevenueNotes PayableSales Select Select Jan 26 Accounts ReceivableCashInterest ReceivableInterest RevenueNotes ReceivableSales Select Select Accounts ReceivableCashInterest ExpenseInterest PayableNotes ReceivablePrepaid Interest Select Select Accounts ReceivableCashInterest ExpenseInterest PayableInterest ReceivableNotes Payable Select Select Accounts ReceivableCashInterest ExpenseInterest PayableInterest RevenueNotes Payable Select Select

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Show Me How Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current fiscal year, Gen-X Ads Co. received

Show Me How

Details of Notes Receivable and Related Entries

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

	Date	Face Amount	Interest Rate	Term
1.	Apr. 10	$78,000	4%	60	days
2.	June 24	18,000	6	30	days
3.	July 1	72,000	6	120	days
4.	Oct. 31	72,000	5	60	days
5.	Nov. 15	90,000	6	60	days
6.	Dec. 27	144,000	4	30	days

Required:

Assume 360 days in a year.

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

Note	(a) Due Date	(b) Interest Due at Maturity
(1)	Apr. 14Apr. 30June 9June 10	$fill in the blank c38a13088006ff9_2
(2)	June 24June 30July 24July 25	fill in the blank c38a13088006ff9_4
(3)	July 1July 31Oct. 28Oct. 29	fill in the blank c38a13088006ff9_6
(4)	Oct. 31Dec. 21Dec. 30Dec. 31	fill in the blank c38a13088006ff9_8
(5)	Nov. 16Nov. 30Jan. 14June 15	fill in the blank c38a13088006ff9_10
(6)	July 21Jan. 26Jan. 27Jan. 31	fill in the blank c38a13088006ff9_12

2. Journalize the entry to record the dishonor of Note (3) on its due date. If an amount box does not require an entry, leave it blank or enter "0".

Jul. 1Jul. 31Oct. 28Oct. 29	Accounts PayableAccounts ReceivableBad Debt ExpenseCashInterest ReceivableNotes Receivable	- Select -	- Select -
	Accounts ReceivableBad Debt ExpenseCashInterest ReceivableNotes PayableNotes Receivable	- Select -	- Select -
	Accounts ReceivableBad Debt ExpenseCashInterest ReceivableInterest RevenueSales	- Select -	- Select -

3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31.

Dec. 31	CashInterest PayableInterest ReceivableInterest RevenueNotes ReceivableUnearned Interest	- Select -
	CashInterest PayableInterest ReceivableInterest RevenueNotes ReceivableUnearned Interest		- Select -

4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. If an amount box does not require an entry, leave it blank or enter "0".

Jan. 14	Accounts PayableAccounts ReceivableCashInterest ReceivableInterest RevenueNotes Receivable	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashInterest ExpenseNotes ReceivableSales	- Select -	- Select -
	Accounts ReceivableAllowance for Doubtful AccountsCashInterest PayableInterest ReceivableNotes Payable	- Select -	- Select -
	Accounts ReceivableCashInterest PayableInterest RevenueNotes PayableSales	- Select -	- Select -
Jan. 26	Accounts ReceivableCashInterest ReceivableInterest RevenueNotes ReceivableSales	- Select -	- Select -
	Accounts ReceivableCashInterest ExpenseInterest PayableNotes ReceivablePrepaid Interest	- Select -	- Select -
	Accounts ReceivableCashInterest ExpenseInterest PayableInterest ReceivableNotes Payable	- Select -	- Select -
	Accounts ReceivableCashInterest ExpenseInterest PayableInterest RevenueNotes Payable	- Select -	- Select -