Watson Co. issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account.
(Assume a 360-day year when calculating interest.)
(a)Determine the due date of the note.
(b)Determine the maturity value of the note.
(c)Journalize the entries to record the following:
(1)Receipt of the note by the payee.
(2)Receipt by the payee of the amount due on the note at maturity. Round answers to the nearest $1.

Question

Watson Co. issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. 
(Assume a 360-day year when calculating interest.)
(a)Determine the due date of the note.
(b)Determine the maturity value of the note.
(c)Journalize the entries to record the following:
(1)Receipt of the note by the payee.
(2)Receipt by the payee of the amount due on the note at maturity. Round answers to the nearest $1.

Quizplus · Accepted Answer

The Answer of Watson Co. issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. 
(Assume a 360-day year when calculating interest.)
(a)Determine the due date of the note.
(b)Determine the maturity value of the note.
(c)Journalize the entries to record the following:
(1)Receipt of the note by the payee.
(2)Receipt by the payee of the amount due on the note at maturity. Round answers to the nearest $1.

Watson Co Issued a 60-Day, 8% Note for $18,000, Dated April