Question

Consider the following transactions for Rural Beginnings.
2013
Dec. 6 Received a $ 4,000, 90-day, 9% note in settlement of an overdue accounts receivable from AM Publishing.
31 Made an adjusting entry to accrue interest on the AM Publishing note.
31 Made a closing entry for interest revenue.
2014
Mar. 6 Collected the maturity value of the AM Publishing note.
Jun. 30 Loaned $ 15,000 cash to Jonathon’s Publishing, receiving a six-month, 8% note.
Oct. 2 Received a $ 2,000, 60-day, 8% note for a sale to Ying Yang Music. Ignore cost of goods sold.
Dec. 1 Ying Yang Music dishonored its note at maturity.
1 Wrote off the receivable associated with Ying Yang Music. (Use the allowance method.)
30 Collected the maturity value of the Jonathan’s Publishing note.
Journalize all transactions for Rural Beginnings. 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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