Question

Here are selected transactions of Wilbur’s Food Supply carried out during the year ended December 31.
June 9 Received a 60-day, 6.75 percent note, dated June 9, for $ 4,245 from Mackie’s Foods for merchandise. (The sale was not previously recorded.)
21 Received a 30-day, 6 percent note, dated June 21, for $ 3,873 from Lundgren Restaurants, a charge customer, for a sale previously recorded.
July 11 Received a 90-day, 6.5 percent note, dated July 11, for $ 2,110 from Angus, Inc., a charge customer, for a sale previously recorded.
21 Received a check from Lundgren Restaurants in payment of principal and interest on its note.
Aug. 8 Received payment of interest from Mackie’s Foods for its note of June 9 and a new 30-day, 7 percent note, dated August 8, for $ 4,245 ( two entries).
20 Received a 60-day, 6.25 percent note, dated August 20, for $ 3,450 from C. Tinker, a charge customer, for a sale previously recorded.
Sept. 7 Mackie’s Foods paid its note, dated August 8, principal plus interest.
9 Discounted the note received from C. Tinker at Handley Bank; discount rate, 6.5 percent.
Oct. 9 Received a check from Angus, Inc., in payment of principal and interest on its note.
Dec. 6 Received a 60-day, 6.5 percent note, dated December 6, for $ 3,210 from L. Kwan, a charge customer, for a sale previously recorded.
8 Received a 30-day, 6.5 percent note, dated December 8, for $ 1,780 from C. Brandmeir, an employee, for a personal loan.

Required
1. Record these transactions in the general journal (pages 47– 49).
2. Show the calculation of each due date.
3. On December 31, record the adjusting entry to account for accrued interest receivable for the L. Kwan and C. Brandmeir notes, which are not due to be paid until the next fiscal period.
4. On January 1, record the reversing entry. (Assume that closing entries have been made.)
5. On January 7, record the receipt of payment on the C. Brandmeir note.



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  • CreatedOctober 21, 2014
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