Chapter 11, Problem 2SE

Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?

On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.

Prefix Supply Company received a 60-day, 5% note for $57,000 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. 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. a. Determine the due date of the note. September 10     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.

On December 1, Williams Company borrowed $45,000 cash from Second National Bank by signing a 90-day, 9% note payable. a. Prepare Williams' journal entry to record the issuance of the note payable. b. Prepare Williams' journal entry to record the accrued interest due at December 31. c. Prepare Williams' journal entry to record the payment of the note on March 1 of the next year.

On November 1, 20X1, Morant Corp. borrowed $80,000 in cash by signing a nine-month, 12% note from a local bank.  The note’s face value plus interest is due on August 1, 20X2. The November 1, 20X1, journal entry is shown in the general journal below. Required: In the journal below, prepare the 12/31/X1 and 8/1/X2 journal entries related to this note. Note: Round all interest calculations to the nearest whole month and whole dollar. Do not show decimals or cents in numerical responses.   Date   Debit Credit 11/1/X1 Cash 80,000            Note Payable   80,000         12/31/X1 AnswerCashInterest ExpenseInterest PayableNote Payable Answer            AnswerCashInterest ExpenseInterest PayableNote Payable   Answer         8/1/X2 AnswerNote Payable        Cash Answer     AnswerInterest PayableCashRetained Earnings Answer     AnswerInterest ExpenseAccounts PayableDeferred Revenue Answer            AnswerCashNote PayableInterest ExpenseInterest PayableRetained Earnings…

Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 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. 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.

On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry for the collection of the note, assuming a 360-day year, should include a a.credit to Interest Revenue for $300 b.credit to Notes Receivable for $20,300 c.debit to Interest Receivable for $300 d.debit to Notes Receivable for $20,000

Valley Designs issued a 120-day, 6% note for $76,800, dated April 15 to Bork Furniture Company on account. Required: A. Determine the due date of the note. B. Determine the maturity value of the note. Assume a 360-day year. Round your answer to the nearest dollar. C. Journalize the entries to record the following: (1) receipt of the note by Bork Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. Round your answer to the nearest dollar.     Chart of Accounts     CHART OF ACCOUNTS Bork Furniture Company General Ledger   ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Valley Designs 129 Allowance for Doubtful Accounts 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated…

Valley Designs issued a 120-day, 5% note for $82,600, dated April 20 to Bork Furniture Company on account. Required: A. Determine the due date of the note. B. Determine the maturity value of the note. Assume a 360-day year. Round your answer to the nearest dollar. C. Journalize the entries to record the following: (1) receipt of the note by Bork Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. Round your answer to the nearest dollar.