Question
In: Accounting
Question 2 Moon Star Company obtained two notes receivable during the year of 2019. The details...
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.
Solutions
Expert Solution
Answer to Question a and b:
Answer to Question c, d and e:
ekkarill92 answered 1 year agoRelated Solutions
Moon Star Company obtained two notes receivable during the year of 2019. The details of the...
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...
Moon Star Company obtained two notes receivable during the year of 2019. The details of the...
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.
Compute maturity value of the note receivable received...
Blossom Company has the following transactions related to notes receivable during the last 2 months of...
Blossom Company has the following transactions related to notes
receivable during the last 2 months of the year. The company does
not make entries to accrue interest except at December 31. (Omit
cost of goods sold entries.)
Nov. 1
Loaned $66,000 cash to C. Bohr on a 12-month, 5% note.
Dec. 11
Sold goods to K. R. Pine, Inc., receiving a $5,400, 90-day, 7%
note.
Dec. 16
Received a $7,200, 180-day, 9% note to settle an open account
from A....
Details of notes receivable and related entries Water Closet Co. wholesales bathroom fixtures. During the current...
Details of notes receivable and related entries
Water Closet Co. wholesales bathroom fixtures. During the
current year ending December 31, Water Closet received the
following notes:
Date
Face Amount
Term
Interest Rate
1.
Mar. 6
$75,000
60 days
2%
2.
Apr. 7
40,000
45 days
9%
3.
Aug. 12
36,000
120 days
5%
4.
Oct. 22
27,000
30 days
8%
5.
Nov. 19
48,000
90 days
9%
6.
Dec. 15
72,000
45 days
5%
Required:
1.
Determine for each note...
Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current...
Details of Notes Receivable and Related Entries
Gen-X Ads Co. produces advertising videos. During the current
fiscal year, Gen-X Ads Co. received the following notes:
Date
Face Amount
Interest Rate
Term
1.
Apr. 10
$63,000
4%
60
days
2.
June 24
14,400
6
30
days
3.
July 1
45,000
6
120
days
4.
Oct. 31
45,000
9
60
days
5.
Nov. 15
90,000
6
60
days
6.
Dec. 27
144,000
4
30
days
Required:
Assume 360 days in a year....
Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current...
Details of Notes Receivable and Related Entries
Gen-X Ads Co. produces advertising videos. During the current
fiscal year, Gen-X Ads Co. received the following notes:
Date
Face Amount
Interest Rate
Term
1.
Apr. 10
$66,000
4%
60
days
2.
June 24
18,000
6
30
days
3.
July 1
27,000
6
120
days
4.
Oct. 31
27,000
5
60
days
5.
Nov. 15
72,000
6
60
days
6.
Dec. 27
180,000
4
30
days
Required:
Assume 360 days in a year....
Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current...
Details of Notes Receivable and Related Entries
Gen-X Ads Co. produces advertising videos. During the current
year ending December 31, Gen-X Ads received the following
notes:
Date
Face Amount
Term
Interest Rate
1.
Apr. 10
$75,000
60
days
4
%
2.
June 24
16,800
30
days
6
3.
July 1
72,000
120
days
6
4.
Oct. 31
72,000
60
days
9
5.
Nov. 15
54,000
60
days
6
6.
Dec. 27
180,000
30
days
4
Required:
Assume 360 days in...
Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current...
Details of Notes Receivable and Related Entries
Gen-X Ads Co. produces advertising videos. During the current
year ending December 31, Gen-X Ads received the following
notes:
Date
Face
Amount
Term
Interest
Rate
1.
Apr. 10
$75,000
60
days
4
%
2.
June 24
16,800
30
days
6
3.
July 1
72,000
120
days
6
4.
Oct. 31
72,000
60
days
9
5.
Nov. 15
54,000
60
days
6
6.
Dec. 27
180,000
30
days
4
Required:
Assume 360 days in...
Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current...
Details of Notes Receivable and Related Entries
Gen-X Ads Co. produces advertising videos. During the current
fiscal year, Gen-X Ads Co. received the following notes:
Date
Face Amount
Interest Rate
Term
1.
Apr. 10
$78,000
4
%
60
days
2.
June 24
12,000
6
30
days
3.
July 1
27,000
6
120
days
4.
Oct. 31
27,000
5
60
days
5.
Nov. 15
72,000
6
60
days
6.
Dec. 27
108,000
4
30
days
Required:
Assume 360 days in a...
Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current...
Details of Notes Receivable and Related Entries
Gen-X Ads Co. produces advertising videos. During the current
fiscal year, Gen-X Ads Co. received the following notes:
Date
Face Amount
Interest Rate
Term
1.
Apr. 10
$69,000
4
%
60
days
2.
June 24
14,400
6
30
days
3.
July 1
72,000
6
120
days
4.
Oct. 31
72,000
5
60
days
5.
Nov. 15
54,000
6
60
days
6.
Dec. 27
144,000
4
30
days
Required:
Assume 360 days in a...
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