(1) Calculate the maturity value of the note, using the stated interest rate. (2) Calculate the present value of the note at the selling date using the days. between the sell date and maturity date and the rate money is worth. Example: A 270-day note for $3000 with interest at 8.5% is dated February 2, 2010.
Purpose of Adjusting Entries. The main purpose of adjusting entries is to update the accounts to conform with the accrual concept. At the end of the accounting period, some income and expenses may have not been recorded, taken up or updated; hence, there is a need to update the accounts.
Reversing entries are journal entries made at the beginning of each accounting period. [ The sole purpose of a reversing entry is to cancel out a specific ...Read more. Positive: 32 %. Learn reversing entries in this comprehensive lesson. ... reversing entry is an optional accounting entry that is made at the beginning of the next ... The reversing entry eliminates the wage and ... Read more. Positive: 14 %. express-helpline is the most recommended homework answer website.