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31 October, 21:19

Jasper makes a $25,000, 90-day, 7% cash loan to clayborn co. jasper's entry to record the collection of the note and interest at maturity should be:

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  1. 31 October, 21:26
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    The journal entry is as follows:

    Cash A/c Dr. $ 25,437.50

    To Notes Receivable A/c $25,000

    To Interest revenue A/c $437.50

    (To record the collection of the note and interest at maturity)

    Working notes:

    Interest for 90 Days:

    = Note value * Interest rate * Time period

    = $25,000 * 0.07 * (90/360) days

    = $437.50
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