Solution-Journalize the adjusting entry to record accrued

Journalize the adjusting entry to record accrued interest

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Reference no: EM132681477

Problem - Details of notes receivable and related entries

Old Town Co. wholesales bathroom fixtures. During the current fiscal year, Old Town Co. received the following notes:

	Date	Face Amount	Term	Interest Rate
1.	Apr. 10	$45,000	60 days	4%
2.	June 24	18,000	30 days	6
3.	July 1	36,000	120 days	6
4.	Oct. 31	36,000	60 days	9
5.	Nov. 15	54,000	60 days	6
6.	Dec. 27	40,500	30 days	4

Instructions -

1. Determine for each note (a) the due date (b) the amount of interest due at maturity, identifying each note by number.

2. Journalize the entry to record the dishonor of Note (3) on its due date.

3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31.

4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January.

Reference no: EM132681477

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Journalize the adjusting entry to record accrued interest

Reference no: EM132681477

Reference no: EM132681477

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