On September 1, 2017, Dougherty Corp accepted a six month, 7 , $42,600 interest bearing note from Rozelle Company in payment of an account receivable Dougherty's year end is December 31 Rozelle paid the note and interest on the due date Assume 360 days in the year Required 1 Who is the maker and who is the payee of the note The maker is and the payee is 2 What is the maturity date of the note 3 Identify and analyze the effect of the transactions or adjustments to be recorded on each of the following dates a September 1, 2017 Activity Accounts Statement(s) How does this entry affect the accounting equation If a financial statement item is not affected, select No Entry and leave the amount box blank If the effect on a financial statement item is negative, i e, a decrease, be sure to enter the answer with a minus sign Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income b December 31, 2017 Activity Accounts Statement(s) How does this entry affect the accounting equation If a financial statement item is not affected, select No Entry and leave the amount box blank If the effect on a financial statement item is negative, i e, a decrease, be sure to enter the answer with a minus sign Do not round intermediate calculations If required, round your final answer to the nearest dollar Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income c March 1, 2018 Activity Accounts Statement(s) How does this entry affect the accounting equation If a financial statement item is not affected, select No Entry and leave the amount box blank If the effect on a financial statement item is negative, i e, a decrease, be sure to enter the answer with a minus sign Do not round intermediate calculations If required, round your final answer to the nearest dollar Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income Transcribed image text

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Question: On September 1, 2017, Dougherty Corp. accepted a six-month, 7%, $42,600 interest-bearing note from Rozelle Company in payment of an account receivable. Dougherty's year-end is

On September 1, 2017, Dougherty Corp. accepted a six-month, 7%, $42,600 interest-bearing note from Rozelle Company in payment of an account receivable. Dougherty's year-end is December 31. Rozelle paid the note and interest on the due date. Assume 360 days in the year.

Required:

1. Who is the maker and who is the payee of the note? The maker is and the payee is .

2. What is the maturity date of the note?

3. Identify and analyze the effect of the transactions or adjustments to be recorded on each of the following dates:

a. September 1, 2017

Activity
Accounts
Statement(s)

How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign.

Balance Sheet

Income Statement

Stockholders'

On September 1, 2017, Dougherty Corp. accepted a six-month, 7%, $42,600 interest-bearing

Net

Assets

Liabilities

Equity

Revenues

Expenses

Income

b. December 31, 2017

Activity
Accounts
Statement(s)

Balance Sheet

Income Statement

Stockholders'

note from Rozelle Company in payment of an account receivable. Dougherty's year-end

Net

Assets

Liabilities

Equity

Revenues

Expenses

Income

c. March 1, 2018

Activity
Accounts
Statement(s)

Balance Sheet

Income Statement

Stockholders'

is December 31. Rozelle paid the note and interest on the due

Net

Assets

Liabilities

Equity

Revenues

Expenses

Income

Transcribed image text

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