ALP Company has an accounting year end of December 31. ALP engaged in the following note receivable transactions during 2015:

June 4 - Accepted a 90-day, 8%, $5,000 note from Beta Inc. in satisfaction of Beta's overdue account receivable.

Nov 16 - Accepted a 120-day, 7%, $3,000 note from Gamma Company in satisfaction of Gamma's overdue account receivable.

Required

1) Related to the Beta note:

a) What is the note's maturity date?

b) Record ALP's journal entries on June 4 and on the maturity date.

2) Related to the Gamma note:

a) What is the note's maturity date?

b) Record ALP's journal entries on Nov 16, Dec 31, and the maturity date.

3) ALP's income statement for the year ended December 31, 2015 will include TOTAL interest income of: $______

Answer rating: 100% (QA)

1a The notes maturity date is 90 days from date of issue and it is june 490 days 2... View the full answer