accounting journal entry questions on notes 498699

Q1

a) KNG issued a 90-day, 7% note for $200,000, dated February 3rd to Amy Co. on account. (Assume a 360-day year when calculating interest.)

Determine the due date of the note

Determine the interest:

Determine the maturity value of the note

b) journalize the entry to record the issuance of the note by KNG on Feb. 3.

c) Journalize the entry to record the receipt of payment of the note at maturity by Amy Co. For a compound transaction, if an amount box does not require an entry, leave it blank or enter “0”.

Q 2

STS Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account. (Assume a 360-day year when calculating interest.)

a) Determine the due date of the note

b) Determine the maturity value of the note

C) Journalize the entry to record the receipt of the payment of the note at maturity

Q 3

MNJ Company issued a 60-day, 8% note for $18,000, dated April 5, to Lake Company on account. (Assume a 360-day year when calculating interest.)

a) Determine the due date of the note

b) Determine the maturity value of the note

c) Journalize the entries:

1-receipt of the note by the payee, and

2- receipt by the payee of the amount due on the note at maturity.

Debit Credit