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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Prefix Supply Company received a 60-day, 4% note for $46,000 dated July 12 from a customer on account.
Required: | |
a. Determine the due date of the note. | |
b. Determine the maturity value of the note. Assume a 360-day year. | |
c. |
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prefix Supply Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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a. Determine the due date of the note.
b. Determine the maturity value of the note. Assume a 360-day year. (Note: Round computations to the nearest whole dollar.)
c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.
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