Missing info on the photo: (Credit column was cut out)  Sep 1 Discounted Charlie Note: 8,000 Nov 30 Discounted Vim note: 50,000

 All notes are trade notes receivable unless otherwise specified. The Charlie note was paid per notification received from the bank. The Howard Company note was dishonored on the due date but the legal department has assured management of its full collectability. 

The company with your concurrence will not use the notes receivable discounted account but will merely note on the face of the statement of financial position the amount of notes receivable discounted but still outstanding.

Required: 

1. At what amount on the current assets section of the statement of financial position dated Dec 31 will the notes receivable trade be carried?

2. Based on the ledger account presented, what amount of interest income should be accrued at december 31?

Transcribed Image Text:

During your audit of the Planetoids Corporation for the calendar year 2020 you find the NOTES RECEIVABLE Transactions Date 2020 Sep Oct Nov Dec 1 Charlie, 21%, due in 3 months 1 Discounted Charlie note 1 Howard Company, 24%, due in two months 1 Vittorio, 24%, due in 13 months 30 Chino Company, no interest, due in one year 30 Discounted Chino Company's note 1 Tango, 18%, due in 5 months 1 Lou Co, President, 12%, due in three months (For cash loan given to Lou Co) Debit 8,000 30,000 60,000 50,000 90,000 120,000

Answer rating: 100% (QA)

To determine the amount at which the notes receivable trade will be carried on the current assets se View the full answer