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.
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.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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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 singleadjusting 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.
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