Question

Consider the following transactions for Jo Jo Music.
2013
Dec. 6 Received a $ 7,000, 90-day, 12% note in settlement of an overdue accounts receivable from Dark Star Music.
31 Made an adjusting entry to accrue interest on the Dark Star Music note.
31 Made a closing entry for interest revenue.
2014
Mar. 6 Collected the maturity value of the Dark Star Music note.
Jun. 30 Loaned $ 11,000 cash to Love Joy Music, receiving a six- month, 11% note.
Oct. 2 Received a $ 2,400, 60-day, 11% note for a sale to Voice Publishing. Ignore cost of goods sold.
Dec. 1 Voice Publishing dishonored its note at maturity.
1 Wrote off the receivable associated with Voice Publishing. (Use the allowance method.)
30 Collected the maturity value of the Love Joy Music note.
Journalize all transactions for Jo Jo Music. Round all amounts to the nearest dollar. (For notes stated in days, use a 360-day year.)



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  • CreatedJanuary 16, 2015
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