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

question 195

Essay

Watson Co. 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:

Measurement of NCI

The process of determining the value of non-controlling interests in a subsidiary, which are not owned by the parent company.

Date of Acquisition

The specific date on which control of assets and liabilities transfers from one entity to another in a business combination.

Investment

An investment refers to an asset or item acquired with the goal of generating income or appreciation in value over time.

Impaired

Refers to assets that are recognized at a value higher than their recoverable amount, leading to an impairment loss that must be recorded.