Entries for Notes Receivable Valley Designs issued a 90-day, 9% note for $78,000, dated April 17, to Bork Furniture Company on account. Assume 360 days in a year when computing the interest. a. Determine the due date of the note. b. Determine the maturity value of the note. $ c1. Journalize the entry to record the receipt of the note by Bork Furniture. If an amount box does not require an entry, leave it blank. c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank.

Question

Rich

Business

14 February, 19:14

Entries for Notes Receivable Valley Designs issued a 90-day, 9% note for $78,000, dated April 17, to Bork Furniture Company on account. Assume 360 days in a year when computing the interest. a. Determine the due date of the note. b. Determine the maturity value of the note. $ c1. Journalize the entry to record the receipt of the note by Bork Furniture. If an amount box does not require an entry, leave it blank. c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank.

+5

Answers (1)

Know the Answer?

Mallory Villa · Answer 1

a. July 20

b. 79.755

c1. 78.000

c2. Note receivable 78.000

interest income 1755

Explanation:

a. Due Date of Note:

April 17 + 90 days = July 20

b. Maturity Value of Note

78000 + 78000x 9% x 90/360 = 79.755

c1. Note Receivable a/c Dr. 78.000

To Cash 78.000

c2. Cash a/c Dr. 79.755

To Note Receivable 78.000

To Interest Income 1755