Answer:
a.
August 7
b.
$12,360
c.
Dr. Cash $12,360
Cr. Interest Income $360
Cr. Note receivable $12,000
Explanation:
Note Receivable is promise in writing to receive a sum of money in future. The money normally consists of Principal and interest.
In this question a note of $120,000 is received from the customer which will mature after 120 days and offer 9% interest on it.
Principal = $12,000
a.
Due date = April 9 + 120 days = August 7
b.
Maturity Value = Principal x ( ( 1 + interest rate ) x time period )
Maturity Value = $12,000 x ( 1 + (9% x 120/360 ) ) = $12,360
c.
Interest Income = $12,360 - $12,000 = $360