Ex. 239
Compute the maturity date and interest for the following notes.
Dates of Notes TermsPrincipalInterest Rate
(a)April 1760 days$50,0006%
(b)August 113 months70,0008%
Ex. 240
Compute the missing amount for each of the following notes:
PrincipalAnnual Interest RateTimeTotal Interest
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(a)$60,00010%2.5 years?
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(b)$120,000?9 months$7,200
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(c)?10%90 days$2,000
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(d)$40,0009%?$1,200
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Ex. 241
Ripken Supply Co. has the following transactions related to notes receivable during the last 2 months of 2013.
Nov. 1Loaned $30,000 cash to Linda Waters on a 1-year, 8% note.
Dec. 11Sold goods to Wainwright, Inc., receiving a $13,500, 90-day, 8% note.
16Received an $8,000, 6-month, 9% note in exchange for Don Garbo's outstanding accounts receivable.
31Accrued interest revenue on all notes receivable.
Instructions
(a)Journalize the transactions for Ripken Supply Co.
(b)Record the collection of the Waters note at its maturity in 2014.