Page 58 - Account for Ag - 2019
P. 58
9-22 Accounting for Agriculture CH 9]
Name:
EXERCISES
1. Frank Lane receives from Robert Lee on account a 60-day, 6% note for $1,200, dated July 1 for sales. Lane discounts the note on July
31 at 5%. On August 31 the bank charges Lane for the maturity value of the note plus protest fees of $5. On September 30, Lee pays
Lane in full with interest at 6% on the amount outstanding since August 31. Give general journal entries for Lane’s books on July 1,
July 31, August 31, and September 30.
Solution: Maturity value of note is
Note Discounted 31 July @ 5%. Discount is:
Proceeds is:
31 August, Bank Charges.
30 Sept Lane receives:
General Journal Page No.
Date Description folio Debits Credits
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