Question 2 Moon Star Company obtained two notes receivable
during the year of 2019. The details of the notes are as
follows:
October 3, 2019 Sold goods for $24,000 on account to a
customer (Sun Company) and received 8% note. The note was due on
October 18, 2019.
December 5, 2019 Received 13% note for $15,000 to replace
account receivable from a customer (Strong Company). The note was
due on January 5, 2020.
Instructions (35 points):
a. Compute maturity value of the note receivable received on
October 3 (Show supporting calculations.)
b. Journalize the collection of the note which was due on
October 18, 2019.
c. Journalize the adjusting entry at December 31, 2019 to
record accrued interest.
d. Compute total interest revenue earned on the note
receivable received on December 5, 2019 (Show supporting
calculations.)
e. Journalize the collection of the note which was due on
January 5, 2020.