On September 12, 2010, Mardi Gras Mambo Inc. received a $6,000 8%, 120 day note on account from Throwin’ Things Corporation a. Is the note a note receivable or a note payable for Mardi Gras Mambo? b...

On September 12, 2010, Mardi Gras Mambo Inc. received a $6,000 8%, 120 day note on account from Throwin’ Things Corporation a. Is the note a note receivable or a note payable for Mardi Gras Mambo? b Is Mardi Gras Mambo the maker or the payee of the note? c What is the face amount of the note? d What is the total amount of cash that is due at maturity (i.e., what is the maturity value of the note)? e What is the due date of the note? f What is the principal of the note? g As of September 30, 2010, how much interest has Mardi Gras Mambo accrued on the note? h. Prepare the journal entries for the following transactions: (1) September 12 (2) September 30 (3) At maturity date (assume no entries regarding the note have been made since September 30) II. Assume that the note is non-interest bearing and that the market rate of interest for similar securities is 8% (all other terms are the same). Answer each of the following: a What is the total amount of cash that is due at maturity (i.e., what is the maturity value of the note)? b. What is the principal of the note? c. Prepare the journal entries for the following transactions: (1) September 12 (2) September 30 (3) At maturity date (assume no entries regarding the note have been made since September 30