Journal Entries (Note Received, Renewed, and Collected) Jan. 16 Received a 30-day, 9% note in payment...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Journal Entries (Note Received, Renewed, and Collected) Jan. 16 Received a 30-day, 9% note in payment for merchandise sale of $20,500. Feb. 15 Received $150 (interest) on the old (January 16) note; the old note is renewed for 30 days at 11%. Mar. 17 Received principal and interest on the new (February 15) note. 19 Received a 60-day, 9% note in payment for accounts receivable balance of $8,70o0. May 18 Received $131 (interest) plus $1,000 principal on the old (March 19) note; the old note is renewed for 60 days (from May 18) at 9%. July 17 Received principal and interest on the new (May 18) note. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: DOC. POST. NO. REF. DATE ACCOUNT TITLE DEBIT CREDIT 20- Jan. 16 Notes Receivable 20,500 1 Sales 20,500 V 2 3. 4 Feb. 15 Cash 150 V 4 Notes Receivable (new note) V Notes Recelvable (ald note) Interest Revenue y 5 20,500 5 20,500 6. 150 v 7 8 9 Mar. 17 Cash v Notes Receivable Interest Revenue 9. 10 10 11 11 12 12 13 Mar. 19 Notes Receivable Accounts Receivable v 8,700 V 13 14 8,700 V 14 15 15 16 May 18 Cash 16 Notes Receivable (new note) v 17 17 Notes Receivable (old note) V 8,700 V 18 18 Interest Revenue v 131 V 19 19 20 20 21 July 17 Cash 21 Notes Receivable 22 Interest Revenue v 23 23 24 24 22 Journal Entries (Note Received, Renewed, and Collected) Jan. 16 Received a 30-day, 9% note in payment for merchandise sale of $20,500. Feb. 15 Received $150 (interest) on the old (January 16) note; the old note is renewed for 30 days at 11%. Mar. 17 Received principal and interest on the new (February 15) note. 19 Received a 60-day, 9% note in payment for accounts receivable balance of $8,70o0. May 18 Received $131 (interest) plus $1,000 principal on the old (March 19) note; the old note is renewed for 60 days (from May 18) at 9%. July 17 Received principal and interest on the new (May 18) note. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: DOC. POST. NO. REF. DATE ACCOUNT TITLE DEBIT CREDIT 20- Jan. 16 Notes Receivable 20,500 1 Sales 20,500 V 2 3. 4 Feb. 15 Cash 150 V 4 Notes Receivable (new note) V Notes Recelvable (ald note) Interest Revenue y 5 20,500 5 20,500 6. 150 v 7 8 9 Mar. 17 Cash v Notes Receivable Interest Revenue 9. 10 10 11 11 12 12 13 Mar. 19 Notes Receivable Accounts Receivable v 8,700 V 13 14 8,700 V 14 15 15 16 May 18 Cash 16 Notes Receivable (new note) v 17 17 Notes Receivable (old note) V 8,700 V 18 18 Interest Revenue v 131 V 19 19 20 20 21 July 17 Cash 21 Notes Receivable 22 Interest Revenue v 23 23 24 24 22
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
A 15-year promissory note for $16 500 bearing interest at 12% compounded semi- annually is discounted at 9% compounded monthly, 3 years and 4 months after the date of issue. Compute the proceeds of...
-
A firm had merchandise inventory of 52,500 on January 1 2016 and had purchases of 60,000 freight in of 300 purchases returns and allowances of 3,800 and purchases discounts of 1,400 during 2016 The...
-
On January 5, 2010, Phelps Corporation received a charter granting the right to issue 5,000 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 50,000 shares of $10 par...
-
Della Simpson Inc. sells two popular brands of cookies, Dellas Delight and Bonnys Bourbon. Dellas Delight goes through the Mixing and Baking Departments and Bonnys Bourbon, a filled cookie, goes...
-
Jay Company has had a defined benefit pension plan for several years. At the beginning of 2016, Jay amended the plan; this amendment provided for increased benefits to employees based on services...
-
Derive the following conversion factors: (a) Convert a pressure of \(1 \mathrm{psi}\) to \(\mathrm{kPa}\). (b) Convert a volume of 1 liter to gallons. (c) Convert a viscosity of \(1 \mathrm{lbf}...
-
The December 1, bank statement of Billys Hamburger just arrived from Safety Bank. To prepare the bank reconciliation, you gather the following additional data: a. The following checks are outstanding...
-
Information from the December 31, 2020, year-end unadjusted trial balance of Woodstock Store is as follows: Additional information:a. The balance on January 1, 2020, in the Store Supplies account was...
-
Barbara was recently widowed, and she subsequently gave her daughter an existing $ 1 0 0 , 0 0 0 life insurance policy under which Barbara was insured, as a gift. Her daughter named herself the...
-
The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost and the cost of...
-
RainDrops Ltd, an umbrella manufacturing company is predicting growing demand for its products since it was announced that weather patterns are changing and that we can expect wetter weather in the...
-
How do Software-Defined Networking (SDN) and Network Functions Virtualization (NFV) paradigms transform traditional network architecture, and what challenges might arise when implementing these...
-
David Brown was an Engineer in 1994 and earned $12,000 that year. His Daughter, Kelly Brown is an accountant and she earned $210,000 in 2018. The price index was 17.6 in 1994 and 218.4 in 2018. Kelly...
-
Active Life Ltd has decided to manufacture a new line of running shoes based on a $50,000, two-year feasibility study. The shoes will sell for $85 a pair and has a variable cost of $30 a pair. It is...
-
The pension fund you manage must make a payment of $250,000 in ten years. The ten-year interest rate is currently 8% per annum. You want to fund this liability using five-year zero-coupon bonds and...
-
The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: Cash Beginning inventory Common stock Retained earnings The following five transactions occurred...
-
Upon the conclusion of a 100,000-square-foot office building project, Casa Loma Development sold the property to Blue Jays Group. Subsequent to this transaction, Casa Loma Development and Blue Jays...
-
Suppose Green Network Energy needs to raise money to finance its new manufacturing facility, but their CFO does not think the company is financially capable of making the periodic interest payments...
-
With a group of students, visit a local copy and graphics shop or a pizza restaurant. As you observe the operation, consider the costs associated with running the business. As a group, identify as...
-
Down Home Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $40,000, and variable costs are $22 per unit. The present selling...
-
(a) What are the two variances between the actual cost and the standard cost for direct materials? (b) Discuss some possible causes of these variances.
-
Review the discussion of ethical issues and the need theories of motivation. Discuss those issues with the goal of taking a strong position on them.
-
Discuss the international aspects of the need theories.
-
What is the relationship between monetary rewards and different needs? How should managers view money as a motivator for people with different needs?
Study smarter with the SolutionInn App