Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on november 16, jackson lawless, inc. made a cash

On November 16, Jackson Lawless, Inc. made a cash loanto a customer andreceived a...On...

Free

50.1K

Verified Solution

Question

Accounting

  1. On November 16, Jackson Lawless, Inc. made a cash loanto a customer and

received a $ 240,000 a 60 day10% note. What is the maturity date and the

            maturity value of the note?

            Give the necessary adjusting entry on December 31:

           Give the journal entry for the maturity date for Jackson Lawless,Inc.

Answer & Explanation Solved by verified expert
4.4 Ratings (713 Votes)

a)Maturity Date : 16November + 60 days = 15 Jan

Maturity value of note = Principal amount + interest accrued

                     = 240000 + (240000 *10%*6/365)

                     = 240000+ 3945.21

                     = 243945.21 (rounded to 243945)

DATE ACCOUNT TITLE DEBIT CREDIT
NOV 16 Note receivable 240000
cash 240000
December 31 Interest receivable 2959
Interest revenue 2959
[Being interest accrued for 45 days :240000*.10*45/365]
15Jan (next year) cash 243945
Interest receivable 2959
Interest revenue (3945-2959) 986
Note receivable 240000

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: AccountingOn November 16, Jackson Lawless, Inc. made a cash loanto a customer andreceived a...On November 16, Jackson Lawless, Inc. made a cash loanto a customer andreceived a $ 240,000 a 60 day10% note. What is the maturity date and the            maturity value of the note?            Give the necessary adjusting entry on December 31:           Give the journal entry for the maturity date for Jackson Lawless,Inc.

Other questions asked by students

Q

1. You manage a local tex-mex restaurant called “Garage Taco Bar.” You have recently switched all of...

Statistics
Q

Topological Question: Show that a countable product of a metrizable space is metrizable. (In the product Topology...

Advance Math
Q

Insurance Plan Summary Deductible Wellness Exams Premium monthly Individual Individual Spouse 5 000 00 No...

Geometry
Q

1 Find the closets point on the parabola y r 4 to the point 16...

Geometry
Q

David Perez Simplify Fractional Exponents Type 1 Feb 24 12 38 18 PM Watch help...

Basic Math
Q

A given line has the equation 10x+2y=-2.What is the equation, in slope-intercept form, of the...

Basic Math
Q

A student has a credit card that is only used for school expenses. Their fall...

Basic Math
Q

Receiving provides 15,000 receiving hours and costs $60,000 per year. What...

Accounting
Q

Dan Caldwell was married on January 15, 2014. His wife, Catherine, is a full-time student...

Accounting
Q

McDermott Company's bank statement for September 30 showed an ending cash balance of $1,448. The...

Accounting
Q

2-30 Cost drivers and functions. The representative cost drivers in the right column of this...

Accounting
Q

Problem 6-20A Adjustments to the cash account based on the bank reconciliation LO 6-3 Determine...

Accounting