Calculation of Maturities and Journalizing Notes Receivable and Payable

Determining Maturity Date

  1. Find the maturity date of the following:
  • 120-day note dated May 16
  • 90-day note dated November 9

Calculate Maturity Value

  1. Find the maturity value of the following:
  • $8,800 6% 9 months
  • $12,000 2% 75 days

Journalizing Notes for Buyer and Seller

  1. For each of the following transactions for Jackson Co. (the seller), journalize what the entry would be for the buyer (North Co.). Jackson Company uses the periodic method.
  • Accounts Receivable, North Co. 7,800
  • Sales 7,800
  • Sold on account to North Co.
  • Notes Receivable 7,800
  • Accounts Receivable, North Co. 7,800
  • Transferred to Notes Receivable
  • Cash 7,906
  • Notes Receivable 7,800
  • Interest Income 106
  • Note paid by North Co. on due date