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PROBLEM 2 (MODIFIED) Winter Corporation received the following notes in 2020: NOTE DATE PRINCIPAL AMOUNT INTEREST RATE TERM A August 31 Php 200,000 10% 6 months B October 19 Php 250,000 12% 90 days C November 11 Php 300,000 11% 1 year   REQUIRED: Determine the due date, amount of interest, and maturity value of each note. Compute interest using a 360-day year for those notes with terms specified in days or years. Round all interest amounts to the nearest peso. Journalize a single adjusting entry at December 31, 2020 to record accrued interest revenue on all three notes. Journalize the collection of principal and interest on Note B.

PROBLEM 2 (MODIFIED) Winter Corporation received the following notes in 2020: NOTE DATE PRINCIPAL AMOUNT INTEREST RATE TERM A August 31 Php 200,000 10% 6 months B October 19 Php 250,000 12% 90 days C November 11 Php 300,000 11% 1 year   REQUIRED: Determine the due date, amount of interest, and maturity value of each note. Compute interest using a 360-day year for those notes with terms specified in days or years. Round all interest amounts to the nearest peso. Journalize a single adjusting entry at December 31, 2020 to record accrued interest revenue on all three notes. Journalize the collection of principal and interest on Note B.

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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PROBLEM 2 (MODIFIED) Winter Corporation received the following notes in 2020:

NOTE

DATE

PRINCIPAL AMOUNT

INTEREST RATE

TERM

A

August 31

Php 200,000

10%

6 months

B

October 19

Php 250,000

12%

90 days

C

November 11

Php 300,000

11%

1 year

 

REQUIRED:

  1. Determine the due date, amount of interest, and maturity value of each note. Compute interest using a 360-day year for those notes with terms specified in days or years. Round all interest amounts to the nearest peso.
  2. Journalize a single adjusting entry at December 31, 2020 to record accrued interest revenue on all three notes.
  3. Journalize the collection of principal and interest on Note B.
  4. On the due date, the maker dishonored Note A. Prepare the journal entry to record the default of the maker.
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