Valley Designs issued a 120-day, 6% note for $80,000 dated April 20 to Bork Furniture Company on account. Required: A. Determine the due date of the note. B. Determine the maturity value of the note. Assume a 360-day year. C. Journalize the entries to record the following: (1) receipt of the note by Bork Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.

Answer and Explanation:

a. The due date of the note is

Take 120 days from April 20 i.e

10 days of April + 31 days in May + 30 days in June + 31 days in July + 18 days in August

So, the due date is August 18

b. Now the maturity value of the note is

= Principal value of the note + interest

= $80,000 + $80,000 × 6% × 120 days ÷ 360 days

= $80,000 + $1,600

= $81,600

c-1 Now the journal entry is

Note receivable $80,000

         To Account receivable $80,000

(Being the receipt of the note is recorded)

For recording this we debited the note receivable as it increase the assets and credited the account receivable as it decreased the assets

c-2 Cash Dr $81,600

           To Note receivable $80,000

           To Interest revenue $1,600

(Being the receipt of the payment of the note is recorded)\

For recording this we debited the cash as it increased the assets and credited the note receivable as it decreased the assets and increased the revenue so the interest revenue is credited

answer; commerce clearing house;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.