Spring Designs Decorators issued a 180-day, 9% note for $88,400, dated April 13 to Jaffe Furniture Company on account.
Required:
A. Determine the due date of the note. B. Determine the maturity value of the note. Assume a 360-day year when calculating interest. C. Journalize the entries to record the following: (1) receipt of the note by Jaffe Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS Jaffe Furniture Company General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Spring Designs Decorators 129 Allowance for Doubtful Accounts 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment
LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable
EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary
REVENUE 410 Sales 610 Interest Revenue
EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense
A. Determine the due date of the note.
B. Determine the maturity value of the note. Assume a 360-day year when calculating interest.
C. (1) Journalize the entry to record the receipt of the note by Jaffe Furniture. Refer to the Chart of Accounts for exact wording of account titles.
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DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1
2
C. (2) Journalize the entry to record the receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.
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DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1
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Spring Designs Decorators issued a 180-day, 9% note for $88,400, dated April 13 to Jaffe Furniture Company on account.
Required:
| A. | Determine the due date of the note. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| B. | Determine the maturity value of the note. Assume a 360-day year when calculating interest. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| C. | Journalize the entries to record the following: (1) receipt of the note by Jaffe Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.
A. Determine the due date of the note. B. Determine the maturity value of the note. Assume a 360-day year when calculating interest. C. (1) Journalize the entry to record the receipt of the note by Jaffe Furniture. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION
C. (2) Journalize the entry to record the receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION
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Related questions
| Apr. | 18. | Received a $68,400, 30-day, 7% note dated April 18 from Glenn Cross on account. |
| 30. | Received a $38,400, 60-day, 6% note dated April 30 from Rhoni Melville on account. | |
| May | 18. | The note dated April 18 from Glenn Cross is dishonored, and the customerâs account is charged for the note, including interest. |
| June | 29. | The note dated April 30 from Rhoni Melville is dishonored, and the customerâs account is charged for the note, including interest. |
| Aug. | 16. | Cash is received for the amount due on the dishonored note dated April 18 plus interest for 90 days at 6% on the total amount debited to Glenn Cross on May 18. |
| Oct. | 22. | Wrote off against the allowance account the amount charged to Rhoni Melville on June 29 for the dishonored note dated April 30. |
Journalize the above transactions in the accounts of Safari Games Co., which operates a riverboat casino. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest.
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Safari Games Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
Journalize the transactions in the accounts of Safari Games Co., which operates a riverboat casino. Refer to the Chart of Accounts for exact wording of account titles. Round all computations to the whole dollar. Assume a 360-day year when calculating interest.
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Solution
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:
| 1. | Cash balance according to the companyâs records at August 31, $18,257. |
| 2. | Cash balance according to the bank statement at August 31, $27,261. |
| 3. | Checks outstanding, $14,624. |
| 4. | Deposit in transit, not recorded by bank, $6,131. |
| 5. | A check for $58 in payment of an account was erroneously recorded in the check register as $580. |
| 6. | Bank debit memo for service charges, $11. |
Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.
Chart of Accounts
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Creative Design Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.
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