Posted On: Nov. 21, 2017
Liability Worksheet 1. Calculate the total simple interest to be paid on each of the following balloon notes: a) 60-day note for $10,000 with 11% interest b) 3-month note for $5,000 with 8% interest c) 4-year note for $20,000 with 5% interest 2. Under what section would the note (c) above be shown on the balance sheet? 3. Horton Company signed a 3-month, 6%, $1000 note on December 1. Journalize the signing of the note, the accrued interest on December 31, and the payment of the note on March 1. 4. Marko Insurance Company received $3000 from John Smith in payment of a 3-year insurance policy on January 1. Record the receipt of the payment and the adjusting entry on December 31. 5. Fridgeco warrants its products for one year. The estimated product warranty is 5% of sales. January sales were $300,000. In February, a customer received warranty repairs in the amount of $400. Journalize the adjusting entry on January 31.