Question: On April 1, 2010, Tabor Co. received a $6,000 note from a customer in settlement of a $6,000 account receivable from that customer. The note

On April 1, 2010, Tabor Co. received a $6,000 note from a customer in settlement of a $6,000 account receivable from that customer. The note bore interest at the rate of 15% per annum, and the note plus interest was payable March 31, 2011.

Required:

Use the horizontal model to show the effects of each of these transactions and adjustments:

a. Receipt of the note on April 1, 2010.

b. The accrual of interest at December 31, 2010.

c. The collection of the note and interest on March 31, 2011.

Step by Step Solution

★★★★★

3.44 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Journal entries a 412010 Dr Note Receivable 6000 Cr Accounts Receivable 6000 b c 12312010 Dr Interes... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

98-B-A-T-D (602).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

a Write the journal entry or use the horizontal model to show the effect of the sale of the season tickets Journal entry Cash 75000 15 x 5000 Unearned sales revenue 75000 b Write the journal entry or...

On April 1, 2010, Bricen Backhoe Co. purchases a trencher for $253,000. The machines is expected to last five years and have a salvage value of $25,300. Compute depreciation expense for year 2011...

Coover Corporations financial statements for the year ending December 31, 2014. At December 31, 2014 Coover had a $100,000 outstanding note payable that was issued in 2011 and is due March 5, 2015....

NOT SURE IF THE ANSWERS I HAVE SO FAR ARE CORRECTED... On April 1, 2019, Tabor Co. received an $7,800 note from a customer in settlement of an $7,800 account receivable from that customer. The note...

On April 1, 2013, Tabor Co. received a $6,000 note from a customer in settlement of a $6,000 account receivable from that customer. The note bore interest at the rate of 15% per annum, and the note...

Notes receivable-interest accrual and collection On April 1, 2008, Tabor Co. received a $6,000 note from a customer in settlement of a $6,000 account receivable from that customer. The note bore...

On April 1, 2019, Tabor Co. received an $5,200 note from a customer in settlement of an $5,200 account receivable from that customer. The note bore interest at the rate of 14% per annum, and the note...

On April 1, 2019, Tabor Co. received an $18,000 note from a customer in settlement of an $18,000 account receivable from that customer. The note bore interest at the rate of 15% per annum, and the...

On April 1, 2016, Tabor Co. received a $5,800 note from a customer in settlement of a $5,800 account receivable from that customer. The note bore interest at the rate of 16% per annum, and the note...

In April 1, 2016, Tabor Co. received an $18.000 note from a customer in sentiment of an $180,000 account receivable from that customer. The note bore interest at the rate of 15% per annum, and the...

How would a telecommunications company use activity-based costing in conducting profit analysis?

A pipeline with roughness ks = 1.0mm and diameter D = 8.4cm connects two reservoirs. The reservoirs are both open to the atmosphere and differ in surface elevation by H = 90m. The two reservoirs with...

1 . Actuary and trustee reports indicate the following changes in the PBO and plan assets of Spartan Inc. during 2 0 2 4 : Prior service cost at Jan. 1 , 2 0 2 4 , from plan amendment at the...

Logging in the rain forest: species richness. Table 24.2 (text page 640) contains data comparing the number of trees and number of tree species in plots of land in a tropical rain forest that had...

Rosie. Inc., did not pay dividends on its $4.50. $50 par value, cumulative preferred stock during 2015 or 2016, but had met its preferred dividend requirement in all prior years. Since 2011. 42.000...

Dedrick, Inc.. did not pay dividends in 2015 or 2016, even though 70.000 shares of its 8.5%, $50 par value cumulative preferred stock were outstanding during those years. The company has 500,000...

O'Garro, Inc., has paid a regular quarterly cash dividend of $0.70 per share for several years. The common stock is publicly traded. On February 21 of the current year, O'Garro's board of directors...

Data Dredgingandp-hackingare umbrella terms for the dangerous practice of automatically testing a large number of hypotheses on the entirety or subsets of a single dataset in order to find...

I need hell for css3/html /* Center Article Styles */ CSS Styles Part 2 Center Article Styles Go to the Center Article Styles section. The article element contains an image and brief description of...

A county now paves its highways using Asphalt A, but is considering switching to the more pricy Asphalt B. (which is reported to be more durable). On 5 different two-lane roadways, the two types of...