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Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2017. The company

Question:

Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2017. The company does not make entries to accrue interest except at December 31.

Nov. 1 Loaned $30,000 cash to Manny Lopez on a 12 month, 10% note.

Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $6,750, 90-day, 8% note.

16 Received a $4,000, 180 day, 9% note in exchange for Joe Fernetti’s outstanding accounts receivable.

31 Accrued interest revenue on all notes receivable.


Instructions

(a) Journalize the transactions for Elburn Supply Co.

(b) Record the collection of the Lopez note at its maturity in 2018.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...

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a Nov 1 Debit Cash 30 000 Credit Notes Receivable 30 000 Dec 11 Debit Accounts Receivable 6 750 Cred…View the full answer


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Related Book For  answer-question
Accounting Principles

Accounting Principles

ISBN: 978-1118875056

12th edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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Question Details
Chapter # 9- Accounting for Receivables
Section: Exercises
Problem: 10
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Question Posted: April 23, 2020 03:53:21
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