6.00 Study Guide

Grandfather Tours signed a $12,000, 180-day note at 9% on March 1. Grandfather Tours uses a 360-day year. Using this information, what is the maturity date of the note payable?

• A. August 27

• B. August 28

• C. August 29

• D. August 30

Sneakers Snack Shop signed a $80,000, 60-day, 7%, interest-bearing note on July 1. What is the maturity date of the note?

• September 2

• September 1

• August 31

• August 30

High Country Apparel signed a $75,000, two-year, interest-bearing, 5% note on October 1, 20XX. The maturity value of the note is:

• $75,000.

• $78,750.

• $80,000.

• $82,500.

Sneakers Snack Shop signed a $30,000.00, 90-day, 8%, interest-bearing note on August 1, 20XX. Using a 360-day year, the maturity value of the note is:

• $30,400.00.

• $30,591.78.

• $30,600.00.

• $32,400.00.

Mary Jones has an overdue account in the amount of $697.35 with Sports Warehouse. Sports Warehouse agrees to accept a note receivable from Mary. The journal entry to record the acceptance of the note receivable is:

Mountain Business Services signed a $25,000.00 90-day note at 5% on May 1, 20XX. Mountain Business Services uses a 360-day year. What is the total amount of interest to be paid on this note?

• $1,250.00

• $312.50

• $308.22

• $125.00

Kevin Davis dishonored a 90-day, 8% note for $2,000. What is the journal entry to record the dishonored note receivable?

Carson’s Shoe Store paid First National Bank in full for a 90-day, 10%, interest-bearing note for $5,000. Using a 360-day year, what journal entry should Carson's Shoe Store make for the payment of the notes payable?