SNK Corp. produces advertising videos. During the current year ending December 31, SNK received the following notes: Date Face Amount Term Interest Rate 1. Jan. 13 $32,000 30 Days 4.5% 2. Mar. 8 60,000 45 Days 8 3. July 12 47,000 90 Days 6 4. Aug. 22 15,000 75 Days 5 5. Nov. 14 35,000 30 Days 7 6. Dec. 9 23,000 60 Days 6 Determine for each note (A) the due date and (B) the amount of interest due at maturity, identifying each note by number. Journalize the entry to record the dishonor of Note (3) on its due date. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January and February
SNK Corp. produces advertising videos. During the current year ending December 31, SNK received the following notes: Date Face Amount Term Interest Rate 1. Jan. 13 $32,000 30 Days 4.5% 2. Mar. 8 60,000 45 Days 8 3. July 12 47,000 90 Days 6 4. Aug. 22 15,000 75 Days 5 5. Nov. 14 35,000 30 Days 7 6. Dec. 9 23,000 60 Days 6 Determine for each note (A) the due date and (B) the amount of interest due at maturity, identifying each note by number. Journalize the entry to record the dishonor of Note (3) on its due date. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January and February
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- SNK Corp. produces advertising videos. During the current year ending December 31, SNK received the following notes:
|
|
Date |
Face Amount |
Term |
Interest Rate |
|
1. |
Jan. 13 |
$32,000 |
30 Days |
4.5% |
|
2. |
Mar. 8 |
60,000 |
45 Days |
8 |
|
3. |
July 12 |
47,000 |
90 Days |
6 |
|
4. |
Aug. 22 |
15,000 |
75 Days |
5 |
|
5. |
Nov. 14 |
35,000 |
30 Days |
7 |
|
6. |
Dec. 9 |
23,000 |
60 Days |
6 |
- Determine for each note (A) the due date and (B) the amount of interest due at maturity, identifying each note by number.
Journalize the entry to record the dishonor of Note (3) on its due date.- Journalize the
adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. - Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January and February
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