Following are transactions of
Following are transactions of the Wipe-Out Company:
Mar. | 2 | Accepted a $11,240, 5%, 90-day note dated this day in granting a time extension on the past-due account of JNC Company. |
Apr. | 21 | Discounted, with recourse, the JNC Company note at BancFirst at a cost of $50. |
June | 2 | Received notice from BancFirst that JNC Company defaulted on the note due May 31. Paid the bank the principal plus interest due on the note. (Hint: Create an account receivable for the maturity value of the note.) |
July | 16 | Received payment from JNC Company for the maturity value of its dishonoured note plus interest for 45 days beyond maturity at 5%. |
Sept. | 3 | Accepted a $5,040, 60-day, 5% note dated this day in granting Cecile Duval a time extension on her past-due account. |
18 | Discounted, without recourse, the Duval note at BancFirst at a cost of $25. |
Questions:
Prepare entries to record the above transactions (The H.W question is a continuation)
1. Record the payment received from JNC Company
2. Record the acceptance of a 5%, 60-day note.
3. Record the discounting of the Duval note.