1. Spring Designs & Decorators issued a 180-day, 4% note for $76,800, dated April 13...
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Accounting
1. Spring Designs & Decorators issued a 180-day, 4% note for $76,800, 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.
2. The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing:
20Y3
Nov.
21
Received from McKenna Outer Wear Co., on account, a $54,000, 60-day, 8% note dated November 21 in settlement of a past due account.
Dec.
31
Recorded an adjusting entry for accrued interest on the note of November 21.
20Y4
Jan.
20
Received payment of note and interest from McKenna Outer Wear Co.
Journalize the entries to record the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.
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