Use the following information to answer questions 1-5.
Determine the due date and amount of interest due at maturity onthe following notes:
Note 1- Dated March 1, $5,000, 60 day note, 9% interest
Note 2- Dated May 15, $9,000, 120 day note, 8% interest
Note 3- Dated May 30, $12,000, 90 day note, 12% interest
1.What is the Maturity Date for Note 1? (Points : 3)
May 1
April 30
April 29
May 5
2.What is the amount of interest due at maturity for Note 1? (Points: 3)
$75
$450
$37.50
$100
3.What is the Maturity Date for Note 2? (Points : 3)
September 11
September 13
September 12
August 30
4.What is the amount of interest due at maturity for Note 2? (Points: 3)
$72
$720
$60
$240
5.What is the amount of interest due at maturity for Note 3? (Points: 3)
$300
$360
$1440
$120
Use the following information to answer questions 1-5.
Determine the due date and amount of interest due at maturity onthe following notes:
Note 1- Dated March 1, $5,000, 60 day note, 9% interest
Note 2- Dated May 15, $9,000, 120 day note, 8% interest
Note 3- Dated May 30, $12,000, 90 day note, 12% interest
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Related questions
Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4
The following selected transactions are from Ohlm Company. (Use 360 days a year.)
2016
| Dec. | 16 | Accepted a $10,200, 60-day, 7% note dated this day in granting Danny Todd a time extension on his past-due account receivable. | ||
| 31 | Made an adjusting entry to record the accrued interest on the Todd note. |
2017
| Feb. | 14 | Received Toddâs payment of principal and interest on the note dated December 16. | ||
| Mar. | 2 | Accepted a(n) $7,700, 7%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. | ||
| 17 | Accepted a(n) $2,100, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable. | |||
| Apr. | 16 | Privet dishonored her note when presented for payment. | ||
| May | 31 | Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accounts receivable. | ||
| July | 16 | Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 7%. | ||
| Aug. | 7 | Accepted a(n) $7,700, 90-day, 12% note dated this day in granting a time extension on the past-due account receivable of Mulan Co. | ||
| Sep. | 3 | Accepted a(n) $2,350, 60-day, 9% note dated this day in granting Noah Carson a time extension on his past-due account receivable. | ||
| Nov. | 2 | Received payment of principal plus interest from Carson for the September 3 note. | ||
| Nov. | 5 | Received payment of principal plus interest from Mulan for the August 7 note. | ||
| Dec. | 1 | Wrote off the Privet account against the Allowance for Doubtful Accounts. |
Required:
1-a. First, complete the table below to calculate the interest amount at December 31, 2016.
1-b. Use the calculated value to prepare your journal entries for 2016 transactions.
1-c. First, complete the table below to calculate the interest amounts.
1-d. Use those calculated values to prepare your journal entries for 2017 transactions.
Required 1A
First, complete the table below to calculate the interest amount at December 31, 2016.
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Required 1B
Use the calculated value to prepare your journal entries for 2016 transactions.
Journal entry worksheet
Accepted a $10,200, 60-day, 7% note dated this day in granting Danny Todd a time extension on his past-due account receivable.
Note: Enter debits before credits.
Made an adjusting entry to record the accrued interest on the Todd note.
Required 1C
First, complete the table below to calculate the interest amounts.
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Required 1D
Use those calculated values to prepare your journal entries for 2017 transactions.
Journal entry worksheet
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1. Received Toddâs payment of principal and interest on the note dated December 16.
2. Accepted a $7,700, 7%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co.
3. Accepted a $2,100, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable.
4. Privet dishonored her note when presented for payment.
5. Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.âs accounts receivable.
6. Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 7%.
7. Accepted a $7,700, 90-day, 12% note dated this day in granting a time extension on the past-due account receivable of Mulan Co.
8. Accepted a $2,350, 60-day, 9% note dated this day in granting Noah Carson a time extension on his past-due account receivable.
9. Received payment of principal plus interest from Carson for the September 3 note.
10. Received payment of principal plus interest from Mulan for the August 7 note.
11. Wrote off the Privet account against Allowance for Doubtful Accounts.
