On September 1, 2015, Fox Corp. accepted a six-month, 6%, $65,000 interest bearing note from Rudy Company in payment of an accounts receivable. Fox's yearend is December 31. Rudy paid the note and interest on the due date.
REQUIRED:
1. Who is the maker and who is the payee of the note?
2. What is the maturity date of the note?
3. Identify the effects of Fox's transactions on the accounting equation in connection with this note.

Question

On September 1, 2015, Fox Corp. accepted a six-month, 6%, $65,000 interest bearing note from Rudy Company in payment of an accounts receivable. Fox's year­end is December 31. Rudy paid the note and interest on the due date.
REQUIRED:
1. Who is the maker and who is the payee of the note?
2. What is the maturity date of the note?
3. Identify the effects of Fox's transactions on the accounting equation in connection with this note.

Quizplus · Accepted Answer

The Answer of On September 1, 2015, Fox Corp. accepted a six-month, 6%, $65,000 interest bearing note from Rudy Company in payment of an accounts receivable. Fox's year­end is December 31. Rudy paid the note and interest on the due date.
REQUIRED:
1. Who is the maker and who is the payee of the note?
2. What is the maturity date of the note?
3. Identify the effects of Fox's transactions on the accounting equation in connection with this note.