Blue Company had the following selected transactions. Apr. 1, 2022 July 1, 2022 Dec. 31, 2022...

 

Transcribed Image Text:

Blue Company had the following selected transactions. Apr. 1, 2022 July 1, 2022 Dec. 31, 2022 Apr. 1, 2023 Apr. 1, 2023 Accepted Goodwin Company's 12-month, 12% note in settlement of a $93,000 account receivable. Loaned $95,000 cash to Thomas Slocombe on a 9-month, 10% note. Accrued interest on all notes receivable. Received principal plus interest on the Goodwin note. Thomas Slocombe dishonored its note; Blue expects it will eventually collect. Prepare journal entries to record the transactions. Blue prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record interest at 12%) (To record interest at 10%) Debit Credit Blue Company had the following selected transactions. Apr. 1, 2022 July 1, 2022 Dec. 31, 2022 Apr. 1, 2023 Apr. 1, 2023 Accepted Goodwin Company's 12-month, 12% note in settlement of a $93,000 account receivable. Loaned $95,000 cash to Thomas Slocombe on a 9-month, 10% note. Accrued interest on all notes receivable. Received principal plus interest on the Goodwin note. Thomas Slocombe dishonored its note; Blue expects it will eventually collect. Prepare journal entries to record the transactions. Blue prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record interest at 12%) (To record interest at 10%) Debit Credit

Answer rating: 100% (QA)

Interest Accrued Notes Payable x Interest Rate x Months 12 Note 1 93000 ... View the full answer