ACCT 220 Week 4 Homework
ACCT 220 Week 4 Homework
Name:
Homework
Week 4
·
Compute the interest
for the following notes and assume at 360 day year for all quizzes, homework,
etc.
Date of
Note
Principle
Interest Rate (%)
Term
Interest
July
1
$100,000
10%
90 Days
January
1
$70,000
8%
120 Days
September
1
$200,000
4%
60 Days
·
On June 1, 2015, Hardy
and Company sold merchandise on account to Laurel Company for $16,000 with
terms of 2/10 net 30. On June 30, Laurel Company gave Hardy a 10% Promissory
Note to settle the account. Make the journal entries to record the sale
and settlement of the account receivable.
|
Date
|
Account
|
Debit
|
Credit
|
·
The financial
statements of Lawn Mowers Inc. report beginning accounts receivable of $100,000
and ending accounts receivable of $105,000. Net credit sales were
$1,200,000 for the year. Calculate the accounts receivable turnover and
average collection period in days. Use a 365 day year.
1.
Accounts Receivable
Turnover
(b)
Average Days To Collect
·
Lost in The Woods
Trading Company borrows $70,000 at 3% interest from the Bonnie and Clyde
Untrustworthy Bank on June 1, 2014. The note is due in one year.
·
Make the journal
entries on the books of the Lost in Woods Trading Company for (1) the
acceptance of the note, (2) the adjusting entry on December 31, 2014, and (3)
the payoff of the loan on May 31, 2015.
|
Date
|
Account
|
Debit
|
Credit
|
·
Make the journal
entries on the books of the Bonnie and Clyde Untrustworthy Bank for (1)
issuance of the note, (2) the adjusting entry on December 31, 2014, and (3) the
payoff of the loan on May 31, 2015.
|
Date
|
Account
|
Debit
|
Credit
|
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