Question :
145. Mr. Potts issued a 90-day, 7% note for $200,000, dated : 1227240
145. Mr. Potts issued a 90-day, 7% note for $200,000, dated February 3rd to Valley Co. on account. (Assume a 360-day year when calculating interest.)a. Determine the due date of the note.b. Determine the interest.c. Determine the maturity value of the note.d. Journalize the entry to record the issuance of the note by Potts on Feb. 3. e. Journalize the entry to record the receipt of payment of the note at maturity by Valley Co.
146. Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account. (Assume a 360-day year when calculating interest.)
a.
Determine the due date of the note.
b.
Determine the maturity value of the note.
c.
Journalize the entry to record the receipt of the payment of the note at maturity.
147. Watson Company issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. (Assume a 360-day year when calculating interest.)
148. On the basis of the following data related to assets due within one year for Webb Co., prepare a partial balance sheet in good form at December 31, 2011. Show total current assets.
Cash
$128,000
Notes receivable
50,000
Accounts receivable
275,000
Allowance for doubtful accounts
25,000
Interest receivable
1,000
149. Journalize the following transactions (Assume a 360-day year when calculating interest.):
Mar. 1
Received a 90-day, 10% note for $24,000, dated March 1, from Batson Co. on account.
May 30
The note of March 1 was dishonored.
150. The following are the current assets from Hanes Co. as of December 31, 2011:
Accounts Receivable
42,000
Allowance for Doubtful Accounts
3,000
Cash
79,000
Interest Receivable
3,500
Merchandise Inventory
104,000
Notes Receivable
100,000
Prepare the current asset section of the balance sheet.
151. For a business that uses the allowance method of accounting for uncollectible receivables:
(a)
Journalize the entries to record the following:
(1)
Record the adjusting entry at December 31, 2010, the end of the fiscal year, to record the bad debt expense. The accounts receivable account has a balance of $800,000, and the contra asset account before adjustment has a debit balance of $600. Analysis of the receivables indicates uncollectible receivables of $18,000.
(2)
In March, 2011, the $350 owed by Fronk Co. on account is written off as uncollectible.
(3)
In November, 2011,, $200 of the Fronk Co. account is reinstated and payment of that amount is received.
(4)
In December, 2011, $400 is received on the $600 owed by Dodger Co. and the remainder is written off as uncollectible.
(b)
Redo the entries in steps (2), (3) and (4) assuming the company uses the direct write-off method.
