Questions -
1. McNamee juices sells products in the health food industry. McNamee sold Johnny Mac merchandise for $5000 on account. Johnny Mac ran into a cash crunch and was able to pay only $1200 in the prescribed period. Both parties agreed to satisfy the remaining balance with a six-month note at 13% interest all payable at the end of the note. Please record the appropriate journal entry establishing the note on McNamee's books.
2. Stronger Satellites accepted a five-month, 7% interest rate, $6000 note from one of its customers on June 1, 2008. The entire balance is payable at the note's maturity. Prepare the June 30 adjusting journal entry related to this note
3. OBX mufflers accepted a five-month, 7.5% interest, $2400 note from ABD motors on June 1 ,2008. The entired balance is payable at the note's maturity. What will be the total payment on October 31, 2008?
4. George Masonry accepted a four month, 10% interest, $1800 note from Earth Tones on July 1,2008 The entire balance is payable at the note's maturity. Assume that george masonry accrues interest on the note monthly. Prepare the Oct 31 journal entry to record the ultimate payment.