Record the following entries for Hanna, Inc., a retail company in journal form: ...
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Accounting
Record the following entries for Hanna, Inc., a retail company in journal form:
Set up an $48,000 note receivable (for the account of Bruce Brown when Brown had trouble paying on his account) at 6% annual interest for 120 days, starting on July 1, 2021.
The note was dishonored (unpaid) on October 29, 2021. (Brown never showed up) Recorded the proper entry to re-establish the account receivable.
Account plus interest on the new principle was collected 30 days later, November 28, 2021
Assume that the note in the problem above instead of being collected, was discounted at Fells Wargo Bank at a discount rate of 16% on July 31st, 2020. Find (showing your work!) the:
a) Maturity Value
b) Discount Period
c) Discount Amount
d) Proceeds
e) Journal Entry
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