a. Determine the due date of the note.
b. Determine the maturity value of the note.
c. Journalize the entry to record the receipt of the payment of the note at maturity.
Answer:
a. The due date for the note is September 6, determined as follows:
August …………………………………………………………….…… 24 days (31 – 7)
September……………………………………………………………… 6 days
Total……………………………………………………………………… 30 days
b. $210,875 [$210,000 + ($210,000 × 5% × 30/360)]
c.
Sept. 6 Cash 210,875
Notes Receivable 210,000
Interest Revenue 875