Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current fiscal yea
Posted: Sun May 29, 2022 8:27 pm
Details of Notes Receivable and Related Entries
Gen-X Ads Co. produces advertising videos. During the current
fiscal year, Gen-X Ads Co. received the following notes:
Required:
Question Content Area
Assume 360 days in a year.
1. Determine for each note (a) the due
date and (b) the amount of interest due at maturity, identifying
each note by number.
Apr. 14Apr. 30June 9June 10
June 24June 30July 24July 25
July 1July 31Oct. 28Oct. 29
Oct. 31Dec. 21Dec. 30Dec. 31
Nov. 16Nov. 30Jan. 14June 15
July 21Jan. 26Jan. 27Jan. 31
Question Content Area
2. Journalize the entry to record the
dishonor of Note (3) on its due date. If an amount box does not
require an entry, leave it blank.
Jul. 1Jul. 31Oct. 28Oct. 29
Accounts PayableAccounts ReceivableBad Debt ExpenseInterest
ReceivableNotes Receivable
Accounts ReceivableCashInterest ReceivableNotes PayableNotes
Receivable
Accounts ReceivableBad Debt ExpenseInterest ReceivableInterest
RevenueSales
Question Content Area
3. Journalize the adjusting entry to
record the accrued interest on Notes (5) and (6) on December 31. If
an amount box does not require an entry, leave it blank.
CashInterest PayableInterest ReceivableInterest RevenueUnearned
Interest
CashInterest PayableInterest ReceivableInterest RevenueUnearned
Interest
Question Content Area
4. Journalize the entries to record the
receipt of the amounts due on Notes (5) and (6) in January. If an
amount box does not require an entry, leave it blank.
Nov. 16Nov. 30Jan. 14June 15
Accounts ReceivableCashInterest ReceivableInterest RevenueNotes
Receivable
Accounts PayableAccounts ReceivableInterest ExpenseNotes
ReceivableSales
Accounts ReceivableAllowance for Doubtful AccountsInterest
PayableInterest ReceivableNotes Payable
Accounts ReceivableInterest PayableInterest RevenueNotes
PayableSales
July 21Jan. 26Jan. 27Jan. 31
Accounts ReceivableCashInterest ReceivableInterest RevenueNotes
Receivable
Accounts ReceivableInterest ExpenseInterest PayableNotes
ReceivablePrepaid Interest
Accounts ReceivableInterest ExpenseInterest PayableInterest
ReceivableNotes Payable
Accounts ReceivableInterest ExpenseInterest PayableInterest
RevenueNotes Payable
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Gen-X Ads Co. produces advertising videos. During the current
fiscal year, Gen-X Ads Co. received the following notes:
Required:
Question Content Area
Assume 360 days in a year.
1. Determine for each note (a) the due
date and (b) the amount of interest due at maturity, identifying
each note by number.
Apr. 14Apr. 30June 9June 10
June 24June 30July 24July 25
July 1July 31Oct. 28Oct. 29
Oct. 31Dec. 21Dec. 30Dec. 31
Nov. 16Nov. 30Jan. 14June 15
July 21Jan. 26Jan. 27Jan. 31
Question Content Area
2. Journalize the entry to record the
dishonor of Note (3) on its due date. If an amount box does not
require an entry, leave it blank.
Jul. 1Jul. 31Oct. 28Oct. 29
Accounts PayableAccounts ReceivableBad Debt ExpenseInterest
ReceivableNotes Receivable
Accounts ReceivableCashInterest ReceivableNotes PayableNotes
Receivable
Accounts ReceivableBad Debt ExpenseInterest ReceivableInterest
RevenueSales
Question Content Area
3. Journalize the adjusting entry to
record the accrued interest on Notes (5) and (6) on December 31. If
an amount box does not require an entry, leave it blank.
CashInterest PayableInterest ReceivableInterest RevenueUnearned
Interest
CashInterest PayableInterest ReceivableInterest RevenueUnearned
Interest
Question Content Area
4. Journalize the entries to record the
receipt of the amounts due on Notes (5) and (6) in January. If an
amount box does not require an entry, leave it blank.
Nov. 16Nov. 30Jan. 14June 15
Accounts ReceivableCashInterest ReceivableInterest RevenueNotes
Receivable
Accounts PayableAccounts ReceivableInterest ExpenseNotes
ReceivableSales
Accounts ReceivableAllowance for Doubtful AccountsInterest
PayableInterest ReceivableNotes Payable
Accounts ReceivableInterest PayableInterest RevenueNotes
PayableSales
July 21Jan. 26Jan. 27Jan. 31
Accounts ReceivableCashInterest ReceivableInterest RevenueNotes
Receivable
Accounts ReceivableInterest ExpenseInterest PayableNotes
ReceivablePrepaid Interest
Accounts ReceivableInterest ExpenseInterest PayableInterest
ReceivableNotes Payable
Accounts ReceivableInterest ExpenseInterest PayableInterest
RevenueNotes Payable
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