164.For each of the following notes receivables held by Christensen Company determine the interest revenue to bereported on the income statements for the year ended December 31. Round answers to nearest whole dollar.
Date
|
Face
|
Rate
|
Time
|
Interest Revenue
|
Aug. 8
|
$45,000
|
7%
|
45 days
|
|
Oct. 7
|
$62,000
|
5%
|
60 days
|
|
Jan. 6
|
$28,000
|
4%
|
120 days
|
|
Nov. 12
|
$43,000
|
6%
|
60 days
|
|
165.Journalize the following transactions in the accounts of Simmons Company:
Mar. 1 Received a $60,000, 60-day, 6% note dated March 1 from Bynum Company on account.
Mar. 18 Received a $25,000, 60-day, 9% note dated March 18 from Solo Company on account.
Apr. 30 The note dated March 1 from Bynum Company is dishonored, and the customer’s account is charged forthe note, including interest.
May 17 The note dated March 18 from Solo Company is dishonored, and the customer’s account is charged for thenote, including interest.
July 29 Cash is received for the amount due on the dishonored note dated March 1 plus interest for 90 days at 8%on the total amount debited to Bynum Company on April 30.
Aug. 23 Wrote off against the allowance account the amount charged to Solo Company on May 17 for thedishonored note dated March 18.