Mega Hits accepts a $25,000, 4% interest, 60 day note in payment of a past due accounts receivable on November 16.
a) Record the journal entry required on November 16.
| Date | Description | Debit | Credit |
|---|---|---|---|
| November 16 | |||
| November 16 |
b) What is the maturity date?
| Number of days in Note | |
| - Days remaining in November | |
| - Days remaining in December | |
| Days left in January |
Maturity date:
c) Record the adjusting journal entry required on December 31 to record interest earned but not received.
| Date | Description | Debit | Credit |
|---|---|---|---|
| Dec 31 | |||
| Dec 31 |
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