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Christie Realty loaned money

Price: $3.50


P8-38B Accounting for notes receivable and accruing interest [35–45 min]
Christie Realty loaned money and received the following notes during 2012.

Note Due Date Principal  Amount Interest Rate
1) 1-Jun-13 12000 10% 1 year
2) 30-Mar-13 20000 9%   6 months
3) 18-Nov-12 10000 12%  30 days


Requirements
For each note, compute interest using a 360-day year. Explanations are not required.
1. Determine the due date and maturity value of each note.
2. Journalize the entry to record the inception of each of the three notes and also
journalize a single adjusting entry at October 31, 2012, the fiscal year end, to
record accrued interest revenue on all three notes.
3. Journalize the collection of principal and interest at maturity of all three notes.

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