Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Yamaha Corporation received the following notes in 2015: NOTE DATE PRINCIPAL AMOUNT INTEREST RATE TERM A August 31 Php 200,000 10% 6 months B October 19 Php 250,000 12% 90 days C November 11 Php 300,000 11% 1 year REQUIRED: 1
Yamaha Corporation received the following notes in 2015:
NOTE DATE PRINCIPAL AMOUNT INTEREST RATE TERM
A August 31 Php 200,000 10% 6 months
B October 19 Php 250,000 12% 90 days
C November 11 Php 300,000 11% 1 year
REQUIRED:
1. Determine the due date, amount of interest, and maturity value of each note. Compute
interest using a 360-day year for those notes with terms specified in days or years. Round all
interest amounts to the nearest peso.
2. Journalize a single adjusting entry at December 31, 2015 to record accrued interest
revenue on all three notes.
3. Journalize the collection of principal and interest on Note B.
4. On the due date, the maker dishonored Note A. Prepare the journal entry to record the
default of the maker.
Expert Solution
| Start date | due date |
Interest amount = principal*rate* time |
maturity value = principal + interest |
| 31 aug |
29 February (Add 6 months) |
200000*10%*6/12 = 10000 (For 6 months) |
200000+10000 = 210000 |
| 19 oct | 16 jan (13+30+31+16= 90) |
250000*12%*90/360 = 7500 |
250000+7500 = 257500 |
| 11 nov. |
10 nov. 2016 (1 year) |
300000*11%*1 = 33000 |
300000+33000 = 333000 |
2.
31 dec. 2015 Interest receivable Dr. 17509
Interest revenue Cr. 17509
Note:-
Interest at 31 dec 2015
| Note | start date | days /months till 31 dec. | Interest |
| A | 31 aug | 4 months | 200000*10%*4/12 = 6667 aprox. |
| B | 19 oct. |
74 days (13+30+31) |
250000*12%*74/360 = 6167 aprox |
| C | 11 nov. |
51 days (20+31) |
300000*11%*51/360 = 4675 |
| Total interest | 6667+6167+4675 = 17509 |
3.
16 jan. 2016
Cash Dr. 257500
Interest receivable Cr. 6167
Interest revenue Cr. 1333
(250000*12%16/360 = 1333)
Note receivable Cr. 250000
4.
29 feb. 2016
Account receivable Dr. 210000
Note receivable Cr. 200000
Interest receivable Cr. 6667
(Till 31 dec.= 6667)
Interest revenue Cr. 3333
(200000*10%2/12= 3333)
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
