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Activity No. 6 Notes Receivable DUE DATE The date a note is to be paid is called the DUE DATE or Maturity Date. The period of time between the issuance date and the due date of the short-term note may be stated in either days or months. When the term of the note is stated in days, the due date is the specified number of days after its issuance. Your activity starts here----- Promissory Note A. P5,000 Butuan City, Philippines March 16, 2021 Ninety days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Five Thousand and 00/100 only PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 10% NO. 10 DUE J. P. ALINGALAN TREASURER, CALA COMPANY B. P30,000.00 Butuan City, Philippines July 8, 2021 One hundred twenty days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Thirty Thousand and 00/100 only. PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 12% NO. W. P. DALUGDOG TREASURER, AMOR COMPANY 11 DUE C. P25,000.00 Butuan City, Philippines June 20, 2021 Sixty days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Twenty Five Thousand and 00/100 only PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 8% NO. 12 DUE K.D. AMORES TREASURER, KOALA COMPANY In each case --- 1 DETERMINE THE DUE DATE 2 COMPUTE FOR THE INTEREST. (to simplify computation, use 360 days a year) 3 WHAT IS THE MATURITY VALUE OF THE NOTE? 4 PREPARE THE JOURNAL ENTRY. Activityb, P

Activity No. 6 Notes Receivable DUE DATE The date a note is to be paid is called the DUE DATE or Maturity Date. The period of time between the issuance date and the due date of the short-term note may be stated in either days or months. When the term of the note is stated in days, the due date is the specified number of days after its issuance. Your activity starts here----- Promissory Note A. P5,000 Butuan City, Philippines March 16, 2021 Ninety days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Five Thousand and 00/100 only PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 10% NO. 10 DUE J. P. ALINGALAN TREASURER, CALA COMPANY B. P30,000.00 Butuan City, Philippines July 8, 2021 One hundred twenty days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Thirty Thousand and 00/100 only. PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 12% NO. W. P. DALUGDOG TREASURER, AMOR COMPANY 11 DUE C. P25,000.00 Butuan City, Philippines June 20, 2021 Sixty days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Twenty Five Thousand and 00/100 only PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 8% NO. 12 DUE K.D. AMORES TREASURER, KOALA COMPANY In each case --- 1 DETERMINE THE DUE DATE 2 COMPUTE FOR THE INTEREST. (to simplify computation, use 360 days a year) 3 WHAT IS THE MATURITY VALUE OF THE NOTE? 4 PREPARE THE JOURNAL ENTRY. Activityb, P

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The term of the note may be stated as a certain number of months after the issuance date. In such cases, the due date is determined by counting the number of months from the issuance date. Example o a three-month note dated June 5 would be due in September 5. o a two-month dated July 31 would be due on September 30. if the maker a note fails to pay the debt on the due date, the note is a DISHONORED NOTE RECEIVABLE. When a note is dishonored, the face value of the note plus any interest due is transferred to the accounts receivable account. Example Assume that the P6,000, 30-day, 12% note received from Julu Co. and recorded on November 21 is dishonored at maturity. The entry to transfer the note and the interest back to the customer's account is as follows: Dec 21 Accounts Receivable - Julu Co. 6,060 Notes Receivable 6,000 Interest Revenue 60 to record dishonored note and interest. The interest of P60 has been earned; even though the note has been dishonored. If the accounts receivable is uncollectible, the amount of P6,000 will be written off against the Allowance for Doubtful Accounts.
Transcribed Image Text:The term of the note may be stated as a certain number of months after the issuance date. In such cases, the due date is determined by counting the number of months from the issuance date. Example o a three-month note dated June 5 would be due in September 5. o a two-month dated July 31 would be due on September 30. if the maker a note fails to pay the debt on the due date, the note is a DISHONORED NOTE RECEIVABLE. When a note is dishonored, the face value of the note plus any interest due is transferred to the accounts receivable account. Example Assume that the P6,000, 30-day, 12% note received from Julu Co. and recorded on November 21 is dishonored at maturity. The entry to transfer the note and the interest back to the customer's account is as follows: Dec 21 Accounts Receivable - Julu Co. 6,060 Notes Receivable 6,000 Interest Revenue 60 to record dishonored note and interest. The interest of P60 has been earned; even though the note has been dishonored. If the accounts receivable is uncollectible, the amount of P6,000 will be written off against the Allowance for Doubtful Accounts.
Activity No.6 Notes Receivable DUE DATE The date a note is to be paid is called the DUE DATE or Maturity Date. The period of time between the issuance date and the due date of the short-term note may be stated in either days or months. When the term of the note is stated in days, the due date is the specified number of days after its issuance. Your activity starts here---- Promissory Note A. P5,000 Butuan City, Philippines March 16, 2021 Ninety days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Five Thousand and 00/100 only PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 10% NO. 10 DUE J. P. ALINGALAN TREASURER, CALA COMPANY B. P30,000.00 Butuan City, Philippines July 8, 2021 One hundred twenty days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Thirty Thousand and 00/100 only. PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 12% 11 DUE W. P. DALUGDOG TREASURER, AMOR COMPANY NO. C. P25,000.00 Butuan City, Philippines June 20, 2021 Sixty days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Twenty Five Thousand and 00/100 only PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 8% NO. 12 DUE K.D. AMORES TREASURER, KOALA COMPANY In each case --- 1 DETERMINE THE DUE DATE 2 COMPUTE FOR THE INTEREST. (to simplify computation, use 360 days a year) 3 WHAT IS THE MATURITY VALUE QOF THE NOTE? Actvityb, p. 4 PREPARE THE JOURNAL ENTRY.
Transcribed Image Text:Activity No.6 Notes Receivable DUE DATE The date a note is to be paid is called the DUE DATE or Maturity Date. The period of time between the issuance date and the due date of the short-term note may be stated in either days or months. When the term of the note is stated in days, the due date is the specified number of days after its issuance. Your activity starts here---- Promissory Note A. P5,000 Butuan City, Philippines March 16, 2021 Ninety days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Five Thousand and 00/100 only PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 10% NO. 10 DUE J. P. ALINGALAN TREASURER, CALA COMPANY B. P30,000.00 Butuan City, Philippines July 8, 2021 One hundred twenty days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Thirty Thousand and 00/100 only. PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 12% 11 DUE W. P. DALUGDOG TREASURER, AMOR COMPANY NO. C. P25,000.00 Butuan City, Philippines June 20, 2021 Sixty days AFTER DATE We PROMISE TO PAY TO THE ORDER OF Fuji Enterprises Twenty Five Thousand and 00/100 only PESOS PAYABLE AT First National Bank VALUE RECEIVED WITH INTEREST AT 8% NO. 12 DUE K.D. AMORES TREASURER, KOALA COMPANY In each case --- 1 DETERMINE THE DUE DATE 2 COMPUTE FOR THE INTEREST. (to simplify computation, use 360 days a year) 3 WHAT IS THE MATURITY VALUE QOF THE NOTE? Actvityb, p. 4 PREPARE THE JOURNAL ENTRY.
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