Brockman Company closes its books on October 31. On September 30, the Notes Receivable account balance is
Question:
Brockman Company closes its books on October 31. On September 30, the Notes Receivable account balance is $18,800. Notes Receivable include the following.
Interest is computed using a 360-day year. During October, the following transactions were completed.Oct. 7 Made sales of $4,600 on Brockman credit cards.12 Made sales of $600 on Visa credit cards. The credit card service charge is 3%.15 Received payment in full from Stuhmer Inc. on the amount due.25 Received payment in full from Moberg Co. on amount due.Instructions(a) Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of goods sold entries.)(b) Enter the balances at October 1 in the receivable accounts and post the entries to all of the receivable accounts. (Use T accounts.)(c) Show the balance sheet presentation of the receivable accounts at October31.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso