Response to the following problem:
Metro Bank received the following notes during 20X8.
|
Note
|
Date
|
Amount
|
Principal Rate
|
Interest Term
|
|
(1)
|
Dec. 1
|
12,000
|
9%
|
1 Year
|
|
(2)
|
Oct.31
|
$11,000
|
12%
|
3 months
|
|
(3)
|
Nov.19
|
15,000
|
10%
|
60 days
|
Required
Identify each note by number, compute interest using a 360-day year, and present entries in general journal form. Explanations are not required.
1. Determine the due date and maturity value of each note.
2. Journalize a single adjusting entry at December 31, 20X8, to record accrued interest revenue on all three notes.
3. For note (1), journalize the collection of principle and interest at maturity.