Mr. Potts issued a 90-day, 7% note for $200,000, dated February 3 to Valley Co. on account. (Assume a 360-day year when calculating interest.)Required:

(a)	Determine the due date of the note.
(b)	Determine the interest.
(c)	Determine the maturity value of the note.
(d)	Journalize the entry to record the receipt of the note from Potts on Feb. 3.*
(e)	Journalize the entry to record the receipt of payment of the note at maturity by Valley Co.*
	*Refer to the Chart of Accounts for exact wording of account titles.

	ASSETS
110	Cash
111	Petty Cash
121	Accounts Receivable-Alan Albertson
122	Accounts Receivable-Jim Dobbs
123	Accounts Receivable-John Groves
124	Accounts Receivable-Jan Lehn
125	Accounts Receivable-Jacob Marley
126	Accounts Receivable-Mr.Potts
127	Accounts Receivable-Chad Thomas
128	Accounts Receivable-Andrew Warren
129	Allowance for Doubtful Accounts
131	Interest Receivable
132	Notes Receivable-Mr.Potts
141	Inventory
145	Supplies
151	Prepaid Insurance
181	Land
191	Equipment
192	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
520	Salaries Expense
521	Advertising Expense
522	Depreciation Expense
523	Delivery Expense
524	Repairs Expense
531	Rent Expense
533	Insurance Expense
534	Supplies Expense
536	Credit Card Expense
537	Cash Short and Over
538	Bad Debt Expense
539	Miscellaneous Expense
710	Interest Expense

First Questions: Determine the due date of the note.

May 4
Feb. 4 Feb. 28	days
March	days
April	days
May	days
Total	days

Determine the interest.

Determine the maturity value of the note.

General Journal

Journalize the entry to record the receipt of the note from Potts on Feb. 3. Refer to the Chart of Accounts for exact wording of account titles.

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Journalize the entry to record the receipt of payment of the note at maturity by Valley Co. Refer to the Chart of Accounts for exact wording of account titles.

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3