Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem P9.32APGA
Accounting for notes receivable and accruing interest
| Learning Objective 4 1. Note3Dec 18, 2018 |
Carley Realty loaned money and received the following notes during 2018.
| Note | Date | Principal Amount | Interest Rate | Term |
| (1) (2) (3) |
Apr.1 Apr.30 Apr.19 |
$6,000 12,000 18,000 |
7% 6% 8% |
1 year 6 months 90 days |
Requirements
1. Determine the maturity date and maturity value of each note.
2.
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Accounting for notes receivable and accruing interest
Carley Realty loaned money and received the following notes during 2018.
Note Date Principal Amount Interest rate term
April 1 $6000 7% 1 year
Sept 30 $12000 6% 6 month
Sept 19 $18000 8% 90 days
Requirements
Determine the maturity date and maturity value of each note.
Journalize the entries to establish each Note Receivable and to record collection of principal and interest at maturity. Include a single adjusting entry on December 31, 2018, the fiscal year-end, to record accrued interest revenue on any applicable note. Explanations are not required. Round to the nearest dollar.
1. For each note below, calculate and record the maturity date and interest.
No. of Note
Date of Note
1
Mar. 5
2
Mar. 16
3
Apr. 12
4
May 9
Principal Interest Rate Time of Note Maturity Date
$700.00
14%
180 days
10%
120 days
11%
90 days
12%
60 days
$1,500.00
$650.00
$1,800.00
Interest
Calculate interest accrued for the following notes receivable as of
December 31st using the following information:
Maker
Note 1
Note 2
$272.61
$276.40
$700
$791.67
Date of Note
11/15
12/15
Principal
$20,000
$10,000
Interest
Rate
10%
5%
Term
120
days
90 days
Chapter 9 Solutions
Horngren's Accounting (12th Edition)
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