Record the following transactions in the journal of Sounds on Wheels, Inc. Explanations are not required. Use

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Record the following transactions in the journal of Sounds on Wheels, Inc. Explanations are not required. Use a 360-day year for interest computations and round to the nearest dollar.

2015

Dec 6 Received a $3,800. 90-day, 6% note on account from JA Audio.

31 Made an adjusting entry to accrue interest on the JA Audio note.

2016

Mar 5 Collected the maturity value of the JA Audio note.

Jun 1 Loaned $2.000 cash to Master Blaster, Inc. receiving a six-month, 8% note.

Oct 31 Received a $3,250. 120-day, 9% note from Dunn's Car Audio. Inc., on its past due account receivable.

Dec 1 Collected the maturity value of the Master Blaster, Inc., note.

Dec 31 Make an adjusting entry to accrue interest on the Dunn's Car Audio, Inc., note.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Financial Accounting

ISBN: 978-0134436111

4th edition

Authors: Robert Kemp, Jeffrey Waybright

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