Assume that on November 3, 2014, Harris Company receives a 60-day, 6.5 percent, $11,000 note, payable in full with interest at maturity, and that the company prepares monthly financial statements.
Required:
1. What is the maturity date of the note?
2. How much interest will be earned on the note if it is paid when due? (Round to the nearest cent.)
3. What is the maturity value of the note?
4. If the company's fiscal year ends on December 31, calculate the amount of the adjusting entry that would be made.
5. How much interest will be earned on this note in 2015? (Round to the nearest cent.)
6. How much cash will be received for interest in 2014? Why does the amount of cash received for interest differ from the amount of interest earned?