Spring Designs & Decorators issued a 180-day, 5% note for
$82,600, 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.
|
| LIABILITIES |
| 210 |
Accounts Payable |
| 211 |
Salaries Payable |
| 213 |
Sales Tax Payable |
| 214 |
Interest Payable |
| 215 |
Notes Payable |
|
EQUITY |
| 310 |
Owner, Capital |
| 311 |
Owner, Drawing |
| 312 |
Income Summary |
|
|
REVENUE |
| 410 |
Sales |
| 610 |
Interest Revenue |
|
EXPENSES |
| 510 |
Cost of Merchandise Sold |
| 520 |
Sales Salaries Expense |
| 521 |
Advertising Expense |
| 522 |
Depreciation Expense-Store Equipment |
| 523 |
Delivery Expense |
| 524 |
Repairs Expense |
| 529 |
Selling Expenses |
| 530 |
Office Salaries Expense |
| 531 |
Rent Expense |
| 532 |
Depreciation Expense-Office Equipment |
| 533 |
Insurance Expense |
| 534 |
Office Supplies Expense |
| 535 |
Store Supplies Expense |
| 536 |
Credit Card Expense |
| 537 |
Cash Short and Over |
| 538 |
Bad Debt Expense |
| 539 |
Miscellaneous Expense |
| 710 |
Interest Expense |
|
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. (1) Journalize the entry to record the receipt of the note by
Jaffe Furniture. Refer to the Chart of Accounts for exact wording
of account titles.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
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DATE |
DESCRIPTION |
POST. REF. |
DEBIT |
CREDIT |
ASSETS |
LIABILITIES |
EQUITY |
1
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2
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C. (2) Journalize the entry to record the receipt of payment of
the note at maturity. Refer to the Chart of Accounts for exact
wording of account titles.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
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DATE |
DESCRIPTION |
POST. REF. |
DEBIT |
CREDIT |
ASSETS |
LIABILITIES |
EQUITY |
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2
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