Mr. Potts issued a 90-day, 7% note for $200,000, dated February 3 to Valley Co. on account.
(Assume a 360-day year when calculating interest.)
(a) Determine the due date of the note.
(b) Determine the interest.
(c) Determine the maturity value of the note.
(d) Journalize the entry to record the receipt of the note from Potts on February 3.
(e) Journalize the entry to record the receipt of payment of the note at maturity by Valley Co.

Question

Mr. Potts issued a 90-day, 7% note for $200,000, dated February 3 to Valley Co. on account. 
(Assume a 360-day year when calculating interest.)
(a) Determine the due date of the note.
(b) Determine the interest.
(c) Determine the maturity value of the note.
(d) Journalize the entry to record the receipt of the note from Potts on February 3.
(e) Journalize the entry to record the receipt of payment of the note at maturity by Valley Co.

Quizplus · Accepted Answer

The Answer of Mr. Potts issued a 90-day, 7% note for $200,000, dated February 3 to Valley Co. on account. 
(Assume a 360-day year when calculating interest.)
(a) Determine the due date of the note.
(b) Determine the interest.
(c) Determine the maturity value of the note.
(d) Journalize the entry to record the receipt of the note from Potts on February 3.
(e) Journalize the entry to record the receipt of payment of the note at maturity by Valley Co.

Mr Potts Issued a 90-Day, 7% Note for $200,000, Dated