Amber Lighting showed the following details regarding its notes receivable:

Required For each note:

a. Determine the maturity date.

b. Calculate the days of accrued interest, if any, at December 31, 2020, Amber’s year-end.

c. Calculate the amount of accrued interest, if any, at December 31, 2020.

For Note 4:

d. Prepare the entry to record the accrued interest at December 31, 2020.

e. Prepare the entry to record the collection on the maturity date. Assume that interest and principal are collected at maturity.

Transcribed Image Text:

Date of Note Interest Principal Rate Note 1 Nov. 1/19 2 Jan. 5/20 3 Nov. 20/20 4 Dec. 10/20 *Round calculations to the nearest whole cent. $370,000 3.0% 212,000 3.5% 102,000 4.5% 135,000 5.5% Term 180 days 120 days 90 days 30 days Maturity Date Days of Accrued Interest at Dec. 31, 2020 Accrued Interest at Dec. 31, 2020