Selkirk Company obtained a $15,000 note receivable from a customer on January 1, 2024. The note, along
Question:
Selkirk Company obtained a $15,000 note receivable from a customer on January 1, 2024. The note, along with interest at 10%, is due on July 1, 2024. On February 28, 2024, Selkirk discounted the note at Unionville Bank. The bank’s discount rate is 12%.
Required:
Prepare the journal entries required on February 28, 2024, to accrue interest and to record the discounting (round all calculations to the nearest dollar) for Selkirk. Assume that the discounting is accounted for as a sale.
Step by Step Answer:
Step 1 Accrue interest earned February 28 2024 Interest receivable 250 Int...View the full answer
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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