Watson Company Issued a 60-Day, 8% Note for $18,000, Dated

question 35

Essay

Watson Company issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account. Assume a 360-day year when calculating interest.(a)Determine the due date of the note.(b)Determine the maturity value of the note.(c)Journalize the entries to record the following:
(1)Receipt of the note by the payee
(2)Receipt by the payee of the amount due on the note at maturity. Round answers to the nearest $1.

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Definitions:

Elaine, Arkansas

A town in the United States known for the Elaine Massacre of 1919, where racial tensions led to a violent conflict and the deaths of many African Americans.

Deputy Sheriff

An officer of the law who serves in the capacity of assisting or acting in place of the sheriff, often involved in law enforcement duties within a county.

African Americans

A term referring to citizens or residents of the United States who have ancestry from the black racial groups of Africa.

North

Generally refers to the northern part of a country or specific region, often associated with specific demographic, economic, or cultural characteristics distinct from the southern part.