Hilo Company closes its books monthly. On September 30, selected ledger account balances are: Notes Receivable .........$31,000

Question:

Hilo Company closes its books monthly. On September 30, selected ledger account balances are:

Notes Receivable .........$31,000

Interest Receivable ....... 170

Notes Receivable include the following.

Hilo Company closes its books monthly. On September 30, selected

Interest is computed using a 360-day year. During October, the following transactions were completed.
Oct. 7 Made sales of $6,300 on Hilo credit cards.
12 Made sales of $1,200 on MasterCard credit cards. The credit card service charge is 3%.
15 Added $460 to Hilo customer balance for finance charges on unpaid balances.
15 Received payment in full from Demaster Inc. on the amount due.
24 Received notice that the Skinner note has been dishonored. (Assume that Skinner is expected to pay in the future.)

Instructions
(a) Journalize the October transactions and the October 31 adjusting entry for accrued interest receivable.
(b) Enter the balances at October 1 in the receivable accounts. Post the entries to all of the receivable accounts.
(c) Show the balance sheet presentation of the receivable accounts at October31.

Balance Sheet
Balance 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...