Lundquist Company received a 60-day, 9% note for $28,000, dated July 23, from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume 360 days in a year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.

a. Sep 10

b. $21,823

c. $21,500

Explanation:

a) Due date of the note

July 13 to 31 = 19 days

Aug 1 to 31 = 31 days

Sep 1 to Sep 10 = 10 days

due date is Sep 10

b) Maturity value of the note

$ 21500 + $ 21500*9%*60/360

= $ 21823

c) Journal entry

Cash debit $ 21823

interest recieved credit $323

Notes Receivable credit $ 21500

A. SEPTEMBER 10

B.$28,420

C.Dr Cash $28,420.00

Cr Notes Receivable $28,000

Cr Interest Revenue $420.00

Explanation:

A.

September 10

B.

[$28,000 + ($28,000x 9% x 60 ÷ 360)

$28,000+$420

=$28,420

C.

Sept 10

Dr Cash $28,420.00

Cr Notes Receivable $28,000

Cr Interest Revenue $420.00

answer; (c) communism and socialism;