On November 16, Jackson Lawless, Inc. made a cash loanto a customer andreceived a...On...

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Accounting

On November 16, Jackson Lawless, Inc. made a cash loanto a customer and
received a $ 240,000 a 60 day10% note. What is the maturity date and the
            maturity value of the note?
            Give the necessary adjusting entry on December 31:
           Give the journal entry for the maturity date for Jackson Lawless,Inc.

Answer & Explanation Solved by verified expert

4.4 Ratings (713 Votes)

a)Maturity Date : 16November + 60 days = 15 Jan

Maturity value of note = Principal amount + interest accrued

= 240000 + (240000 *10%*6/365)

= 240000+ 3945.21

= 243945.21 (rounded to 243945)

DATE	ACCOUNT TITLE	DEBIT	CREDIT
NOV 16	Note receivable	240000
	cash		240000

December 31	Interest receivable	2959
	Interest revenue		2959
	[Being interest accrued for 45 days :240000.1045/365]

15Jan (next year)	cash	243945
	Interest receivable		2959
	Interest revenue (3945-2959)		986
	Note receivable		240000

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In: AccountingOn November 16, Jackson Lawless, Inc. made a cash loanto a customer andreceived a...On November 16, Jackson Lawless, Inc. made a cash loanto a customer andreceived a $ 240,000 a 60 day10% note. What is the maturity date and the maturity value of the note? Give the necessary adjusting entry on December 31: Give the journal entry for the maturity date for Jackson Lawless,Inc.