Breckenridge Nutrition completed the following selected transactions:
Oct 31 Sold goods to Best-Yet Foods, receiving a $36,000, three-month 5.00% note.
Dec 31 Made an adjusting entry to accrue interest on the Best-Yet foods note.
Jan 31 Collected the Best-Yet Foods note.
Feb 18 Received a 90-day, 4.50%, $7,400 note from Daphne’s Market on account.
19 Sold the Daphne’s Market note to City Bank, receiving cash of $7,200. (Debit the difference to financing expense.)
Nov 11 Loaned $15,500 to Tiger Foods, receiving a 90-day, 6.00% note.
Dec 31 Accrued the interest on the Tiger Foods note.
1. Record the transactions in Breckenridge Nutrition’s journal. Round all amounts to the nearest dollar; explanations are not required.
2. Show what Breckenridge Nutrition will report on its comparative classified balance sheet at December 31, 2015, and December 31, 2014.