Question: Kolton Company closes its books on its July 31 year end

Kolton Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $23,800. Notes Receivable include the following.

During July, the following transactions were completed.
July 5 Made sales of $4,500 on Kolton credit cards.
14 Made sales of $600 on Visa credit cards. The credit card service charge is 3%.
20 Received payment in full from Booth Inc. on the amount due.
24 Received payment in full from Manning Co. on the amount due.

(a) Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of goods sold entries.)
(b) Enter the balances at July 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 July31.

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  • CreatedApril 07, 2014
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