Question : 21) The due date of a 120 day, 10% note : 1230166

 

21) The due date of a 120 day, 10% note for $30,000, dated April 12 is:

A) August 9.

B) August 10.

C) August 11.

D) August 12.

22) If the interest on a note is 12.5% and the principal was $100,000, what is the maturity value of the note, if the note is outstanding for 7 months? (Round to the nearest dollar.)

A) $1,143

B) $7,292

C) $107,292

D) $112,500

 

23) On December 31, 2012, the payee on a $4,500, 120-day, 10% note dated November 1, 2012, will recognize: (Use a 365 day year and round to the nearest dollar.)

A) interest receivable, $148.

B) interest receivable, $75.

C) interest payable, $148.

D) interest payable, $75.

 

24) Kate Johnson, president of BQ Industries, executed a note payable on behalf of the company on October 1, 2012 in the amount of $125,000 with an interest rate of 8% for 15 months.

 

Calculate the following items:

1.The total interest to be paid over the term of the note

2.The interest that should be accrued at December 31, 2012 (the FYE)

3.The maturity value of the note when the note is due

4.The date that the note is due

 

25) Complete the following chart by filling in the missing items. Use a 360-day year and round all answers to the nearest dollar and to 2 decimal places for percentages.

 

 

Principal

Interest Rate

Time

Interest

Maturity Value

1

$12,000

10%

120 days

A

B

2

$50,000

8%

C

D

$53,000

3

$15,000

D

180 days

$2,500

E

4

F

18%

G

$10,800

$70,000

5

$90,000

6%

H

$900

I

 

 

26) For each of the following independent situations, prepare the appropriate adjusting journal entry on the last day of the fiscal year end (FYE). Use the information provided below for each situation.

 

 

Principal

Interest Rate

Time

Interest

Maturity Value

1

$12,000

10%

120 days

$400

$12,400

2

$50,000

8%

9 months

$3,000

$53,000

3

$15,000

33.33%

180 days

$2,500

$17,500

4

$60,000

18%

1 year

$10,800

$70,000

5

$90,000

6%

60 days

$900

$90,900

 

1Note executed on July 01, 2012 and FYE is September 30. (92 days)

2Note executed on April 01, 2012 and FYE is September 30. (6 months)

3Note executed on October 15, 2012 and FYE is January 31. (108 days)

4Note executed on January 01, 2012 and FYE is April 30. (4 months)

5Note executed on September 01, 2012 and FYE is September 30. (30 days)

 

27) The Shark Bank lent Sandy’s Pastry Store $34,000 on a sixty day, 7% note dated April 10th.  Use a 365 day year when calculating interest and round all amounts to the nearest dollar.

Required:

1.Determine the due date of the note.

2.Determine the maturity value of the note.

3.Journalize the entries to record the receipt of the note by the payee and the receipt by the payee of the amount due on the note at maturity.