1. Wolfe Company issued a 60 day, 8% note for $15,000, dated April 5, to Lamb Co. on account. What is the due date of the note, the maturity date, and journalize the entries to record the following: 1. Receipt of the note by payee, and 2. Reciept by the payee of the amount due on the note at maturity. Round the answers to the nearest $1
2. Journalize:
Mar 1 Rrecieved a 90 day, 10% note for $36,000, dated March 1, from Burke Co. on account.
May 30 The note of March 1 was dishonored.
Dec 11 Accepted $33,000 in full settelement of the amount owwed on the note dishonered on May 30. The allowance method of accounting for uncollectabl receivables used.
3. On the basis of the folowing data related to assets due within one year for Wally Co., prepare a partial balance sheet in good form at December 31, 2005. Show curent assets.
Cash..........................$125,000
Notes receivable.......... $50,000
Accounts receivable.....$275,000
Allowance for doughtful accounts
..................................$25,000
Interest receivable...........$1,000
4. Based on the following data and using a 365-day year, compute (a) the accounts receivable turnover and (b) the number of days' sales in receivables averages 19. (c) comment on this situation:
12/31/05 Accounts Receivable, net.........$90,000
12/31/06 Accounts Receivable, net.........$70,000
For the year ended 12/31/05, net credit sales............................................. $1,250,000
For the year ended 12/31/06, net credit sales............................................. $1,600,000
5. Small Co. received a $10,000, 12%, 90-day note, dated October 31, Ashley Co. discounted the note at the bank at 9%. Determine the items below and insert the answers in the spaces provided.
(a) Due date of note -----------
(b) Maturity value of note -----------
(c) Discount period ----------- days
(d) Discount amount -----------
(e) proceeds from discounting note --------
(f) interest------------- ------------
(insert Revenue or Expense)
Thank you, Realsmoove
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