# Lo 96 which of the following is true of a maturity

• 59
• 100% (1) 1 out of 1 people found this document helpful

This preview shows page 4 - 6 out of 59 pages.

19.LO 9.6Which of the following is true of a maturity date?A.It must be calculated in days, not in months or years.B.It is the date when principal and interest on a note are to be repaid to the lender.C.It is the date of establishment of note terms between a lender and customer.D.It is not a characteristic of a note receivable.SolutionB20.LO 9.6Mark Industries issues a note in the amount of \$45,000 on August 1, 2018 in
exchange for the sale of merchandise. Which of the following is the correct journal entry for thissale?
Page 4 of 59
OpenStaxPrinciples ofAccounting, Volume 1: Financial AccountingChapter 9: Accounting for Receivables21.LO 9.6A customer takes out a loan of \$130,000 on January 1, with a maturity date of 36months, and an annual interest rate of 11%. If 6 months have passed since note establishment,what would be the recorded interest figure at that time?
22.LO 9.6A company collects an honored note with a maturity date of 24 months fromestablishment, a 10% interest rate, and an initial loan amount of \$30,000. Which accounts areused to record collection of the honored note at maturity date?
23.LO 9.6Orion Rentals is unable to collect on a note worth \$25,000 and has accumulatedinterest of \$250. It convert this note and interest to accounts receivable. After some time, Orionis still unable to collect the debt and it decides to sell the converted note to a collection agency.The collection agency will pay only 20% of the value of accounts receivable to Orion. What isthe amount of cash paid to Orion from the collection agency?A. \$5,000B. \$5,050C. \$20,000D. \$19,950B. (\$25,000 + \$250) × 20%Solution
Questions1.LO 9.1What is the matching principle?

Course Hero member to access this document

Course Hero member to access this document

End of preview. Want to read all 59 pages?

Course Hero member to access this document

Term
Spring
Professor
Jim Duncan
Tags
Generally Accepted Accounting Principles, Goods Sold