Question
Vauxall Holdings showed the following information regarding its notes receivable: Note Date of Note Principal Interest Rate Term Maturity Date Days of Accrued Interest at
Vauxall Holdings showed the following information regarding its notes receivable:
Note |
Date of Note |
Principal |
Interest Rate |
Term |
Maturity Date | Days of Accrued Interest at Dec. 31, 2017 | Accrued Interest at Dec. 31, 2017 |
1 | Nov. 1/16 | $320,000 | 4.0% | 180 days | |||
2 | Jan. 5/17 | 132,000 | 5.0% | 90 days | |||
3 | Nov. 20/17 | 122,000 | 4.5% | 45 days | |||
4 | Dec. 10/17 | 160,000 | 5.5% | 30 days |
Required: For each of Vauxall Holdings note receivable given below: (Use 365 days in a year. Do not round intermediate calculations. Round the "Amount of Accrued Interest at Dec. 31, 2017" answers to 2 decimal places.) a. Determine the maturity date. b. Calculate the days of accrued interest, if any, at December 31, 2017 (Vauxall Holdings' year-end). c. Calculate the amount of accrued interest, if any, at December 31, 2017. For Note 3: d. Prepare the entry to record the accrued interest at December 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.) e. Prepare the entry to record the collection on the maturity date. Assume that both interest and principal are collected at maturity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use 365 days in a year. Do not round intermediate calculations. Round your answers to 2 decimal places.)
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