Question
Valley Designs issued a 120-day, 5% note for $60,000 dated April 15 to Bork Furniture Company on account. Required: A. Determine the due date of
Valley Designs issued a 120-day, 5% note for $60,000 dated April 15 to Bork Furniture Company on account.
Required:
A. | Determine the due date of the note. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
B. | Determine the maturity value of the note. Assume a 360-day year. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
C. | Journalize the entries to record the following: (1) receipt of the note by Bork Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSBork Furniture CompanyGeneral Ledger
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