Incubate Co. produces advertising videos. During the last six months of the current fiscal year, Incubate Co.

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Incubate Co. produces advertising videos. During the last six months of the current fiscal year, Incubate Co. received the following notes.


Incubate Co. produces advertising videos. During the last six mo


Instructions
1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number.
2. Journalize the entry to record the dishonor of Note (3) on its due date.
3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31.
4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January andFebruary.

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Accounting

ISBN: 978-0324188004

21st Edition

Authors: Carl s. warren, James m. reeve, Philip e. fess

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