Daw Company's December 31 year-end unadjusted trial balance shows a $26,000 balance in Notes Receivable

On August 2, Jun Co. receives a $6,600, 90-day, 12% note from customer Ryan Albany as payment on his $6,600 account.

1. Compute the maturity date for the above note.

• 
  

  October 29
• 
  

  October 30
• 
  

  October 31 
• 
  

  November 1
• 
  

  November 2

2. Prepare Jun's journal entry for August 2.

No	Date	General Journal	Debit	Credit
1	Aug 02	Notes receivable—R. Albanyselected answer correct	6,600selected answer correct	not attempted
		Accounts receivable—R. Albanyselected answer correct	not attempted	6,600selected answer correct

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12.

On August 2, Jun Co. receives a $7,200, 90-day, 12.5% note from customer Ryan Albany as payment on his $7,200 account.

Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year. (Round your answers to nearest whole dollar value. Use 360 days a year.)

No	Date	General Journal	Debit	Credit
1	Oct 31	Cashselected answer correct	7,425selected answer correct	not attempted
		Notes receivable—R. Albanyselected answer correct	not attempted	7,200selected answer correct
		Interest revenue 7200*12.5% * 90/360selected answer correct	not attempted	225selected answer correct

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13.

Daw Company's December 31 year-end unadjusted trial balance shows a $26,000 balance in Notes Receivable. This balance is from one 6% note dated December 1, with a period of 45 days. Assume Daw Company does not prepare reversing entries.

Prepare journal entries for December 31 and for the note's maturity date assuming it is honored. (Use 360 days a year.)

No	Date	General Journal	Debit	Credit
1	Dec 31	Interest receivableselected answer correct	130selected answer correct	not attempted
		Interest revenueselected answer correct	not attempted	130selected answer correct
2	Jan 15	Cashselected answer correct	26,195selected answer correct	not attempted
		Interest receivable 26000*6%* 30/360selected answer correct	not attempted	130selected answer correct
		Interest revenue 26000*6%* 15/360selected answer correct	not attempted	65selected answer correct
		Notes receivableselected answer correct	not attempted	26,000