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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:

	Date	Face Amount		Interest Rate		Term
1.	Apr. 10	$84,000		4%		60	days
2.	June 24	16,800		6		30	days
3.	July 1	45,000		6		120	days
4.	Oct. 31	45,000		9		60	days
5.	Nov. 15	54,000		6		60	days
6.	Dec. 27	126,000		4		30	days

Required:

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.

Note	(a) Due Date	(b) Interest Due at Maturity
(1)	June 9	$
(2)	July 24
(3)	Oct. 29
(4)	Dec. 30
(5)	Jan. 14
(6)	Jan. 26

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 or enter "0".

Oct. 29	Accounts Receivable
	Notes Receivable
	Interest Revenue

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3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31.

Dec. 31	Interest Receivable
	Interest Revenue

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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 or enter "0".

Jan. 14	Cash
	Notes Receivable
	Interest Receivable
	Interest Revenue
Jan. 26	Cash
	Notes Receivable
	Interest Receivable
	Interest Revenue

2. Journalise the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Dec 31 Interest Receivable 420 Interest Revenue 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 180,960 Notes Receivable 180.000 Interest Receivable Interest Revenue 540 X Jan. 26 Cash 126,840 X Notes Receivable 126.000 Interest Receivable 70 X Interest Revenue 770 x

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