Notes Payable & Notes Receivable
Hi! I can't seem to understand this, I got most of answers correct but what am I doing wrong for these. Please explain and show the calculation so I can realise my mistakes. Please help me, Please.
NOTES PAYABLE
Date... Description... Interest Rate
Jan-1... 100,00 note due in 9 months... 9%
Mar-1... 75,000 note due in 6 months... 12%
NOTES RECEIVABLE
Feb 1... 60,000 note due in 3 months... 6%
Assume all interest is paid at maturity and none of the notes are paid early.
What should be the entry for interest expense on March 31?
What entry should be recorded in the interest receivable account for February?
How much interest income should be recorded for the year ending December 31?
How much interest expenses is recorded for the year ending December 31?
How much cash will be paid for the January 1 note, plus interest, on October 1?