Horngren's Accounting (11th Edition)
11th Edition
ISBN: 9780133856781
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 9, Problem S9.9SE
Computing interest amounts on notes receivable
A cable of notes receivable for 2016 follows:
| Principal | Interest Rate | Interest Period During 2016 | |
| Note 1 | $ 30,000 | 4% | 3 months |
| Note 2 | 8,000 | 5% | 180 days |
| Note 3 | 28,000 | 12% | 90 days |
| Note 4 | 110,000 | 10% | 6 months |
For each of the notes receivable, compute the amount of interest revenue earned during 2016. Round to the nearest dollar.
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A table of notes receivable for 2024 follows:
E (Click the icon to view the table of notes receivable for 2024.)
For each of the notes receivable, compute the amount of interest revenue earned during 2024. Round to the nearest dollar. (Ignore leaps years, and use a 365-day year for the notes with interest periods in days. Use a 12-month year for notes with interest periods in months.)
Interest revenue
earned during 2024
Note 1
Note 2
Note 3
Note 4
Data Table
Principal Interest Rate
Interest Period During 2024
Note 1
$ 60,000
8%
9 months
Note 2
14,000
12%
180 days
Note 3
22,000
5%
270 days
Note 4
150,000
11%
3 months
Print
Done
A table of notes receivable for 2024 follows:
E (Click the icon to view the table of notes receivable for 2024.)
For each of the notes receivable, compute the amount of interest revenue earned during 2024. Round to the nearest dollar. (Ignore leaps years, and use a 365-day year for the notes with interest periods in days. Use a 12-month year for notes with interest periods in months.)
Interest revenue
earned during 2024
Data Table
Note 1
Note 2
Note 3
Principal Interest Rate
Interest Period During 2024
Note 4
Note 1
$ 50.000
11%
3 months
Note 2
4,000
14%
180 days
Note 3
24,000
6%
90 days
Note 4
150,000
5%
9 months
Print
Done
A seven-month promissory note for $7,800 dated March 12, 2016 bears interest at 8%
a. What is the legal due date of the note?
b. What is the amount of interest payable at the due date?
c. What is the maturity value of the note?
Chapter 9 Solutions
Horngren's Accounting (11th Edition)
Ch. 9 - 1. With good internal controls, the person who...Ch. 9 - Prob. 2QCCh. 9 - Which of the following is a limitation of the...Ch. 9 - 3. The entry to record a write-off of an...Ch. 9 - Brickman Company uses the allowance method to...Ch. 9 - Brickman’s ending balance of accounts Receivable...Ch. 9 - At December 31 year-end, Crain Company has an...Ch. 9 - Using the data in the preceding question, what...Ch. 9 - At year-end, Schultz Company has cash of $11,600,...Ch. 9 - Using the data in the preceding question, assume...
Ch. 9 - What is the difference between accounts receivable...Ch. 9 - List some common examples of other receivables,...Ch. 9 - Prob. 3RQCh. 9 - When dealing with receivables, give an example of...Ch. 9 - What type of account must the sum of all...Ch. 9 - Prob. 6RQCh. 9 - What occurs when a business factors its...Ch. 9 - What occurs when a business pledges its...Ch. 9 - What is the expense account associated with the...Ch. 9 - When is bad debts expense recorded when using the...Ch. 9 - What are some limitations of using the direct...Ch. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - When using the allowance method, what account is...Ch. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - How do the percent-of-receivables and...Ch. 9 - What is the difference between the...Ch. 9 - In accounting for bad debts, how do the income...Ch. 9 - What is the formula to compute interest on a note...Ch. 9 - Prob. 21RQCh. 9 - Prob. 22RQCh. 9 - Prob. 23RQCh. 9 - Prob. 24RQCh. 9 - Prob. S9.1SECh. 9 - Prob. S9.2SECh. 9 - Applying the direct write-off method to account...Ch. 9 - Collecting a receivable previously written...Ch. 9 - Applying die allowance method to account for...Ch. 9 - Applying the allowance method (percent-of-sales)...Ch. 9 - Applying the allowance method...Ch. 9 - Applying the allowance method...Ch. 9 - Computing interest amounts on notes receivable A...Ch. 9 - Accounting for a note receivable On June 6,...Ch. 9 - Accruing interest revenue and recording collection...Ch. 9 - Recording a dishonored note receivable Midway...Ch. 9 - Using the acid-test ratio, accounts receivable...Ch. 9 - Defining common receivables terms Learning...Ch. 9 - E9-15 Identifying and correcting internal control...Ch. 9 - Journalizing transactions using the direct...Ch. 9 - Prob. E9.17ECh. 9 - Prob. E9.18ECh. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Prob. E9.20ECh. 9 - Prob. E9.21ECh. 9 - Journalizing note receivable transactions...Ch. 9 - Journalizing note receivable transactions The...Ch. 9 - Journalizing note receivable transactions Like New...Ch. 9 - Evaluating ratio data Chippewa Carpets reported...Ch. 9 - Prob. E9.26ECh. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Prob. P9.30APGACh. 9 - Accounting for notes receivable and accruing...Ch. 9 - Accounting for notes receivable, dishonored notes,...Ch. 9 - Prob. P9.33APGACh. 9 - Prob. P9.34BPGBCh. 9 - Prob. P9.35BPGBCh. 9 - Prob. P9.36BPGBCh. 9 - Prob. P9.37BPGBCh. 9 - Prob. P9.38BPGBCh. 9 - Prob. P9.39BPGBCh. 9 - Prob. P9.40BPGBCh. 9 - Prob. P9.41CPCh. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Decision Case 9-1 Weddings on Demand sells on...Ch. 9 - Decision Case 9-2 Pauline’s Pottery has always...Ch. 9 - Prob. 9.1FCCh. 9 - > Financial Statement Case 9-1 Use Starbucks...
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