Watson Co. issued a 60-day, 8% note for $18,000, dated April 5, to Laker Company on account.
(Assume a 360-day year when calculating interest.)
(a)Determine the due date of the note.
(b)Determine the maturity value of the note.
(c)Journalize the entries to record the following:
(1)Receipt of the note by the payee.
(2)Receipt by the payee of the amount due on the note at maturity. Round answers to the nearest $1.

Maturity Value

The amount that will be payable to the holder of a financial instrument at its maturity date, including principal and interest.

Calculating Interest

Calculating interest involves determining the amount of interest earned or paid on a financial asset or liability over a specific period, typically using the principal amount, rate, and time.

Journalize Entries

The process of recording financial transactions in a company's journal, a step in the accounting cycle that leads to the preparation of financial statements.