Kelly Realty loaned money and received the following notes during 2012.

Kelly Realty loaned money and received the following notes during 2012.

Principal Amount

Interest Rate

Term

1) Aug 1

24000

17%

1 year

2) Nov 30

18000

6%

6 months

3) Dec 19

12000

12%

30 days

Requirements

For each note compute interest using a 360-day year. Explanations are not required.

1. Determine the due date and maturity value of each note.

2. Journalize the entry to record the inception of each of the three notes and also journalize a single adjusting entry at December 31 2012 the fiscal
year end to record accrued interest revenue on all three notes.

3. Journalize the collection of principal and interest at maturity of all three notes.