Crane Company's year end is July 31. Crane prepares adjusting entries to accrue interest revenue annually....

 

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Crane Company's year end is July 31. Crane prepares adjusting entries to accrue interest revenue annually. On June 30, the Notes Receivable account balance is $24,200 and the Credit Card Receivable account balance was zero. Notes receivable are as follows: Date Maker Face Value Term Maturity Date Interest Rate April 21 Coote Inc. May 25 Brady Co. $4,800 8,400 3 months July 20 8% 2months July 24 10% June 30 BMG Corp. 11,000 6 months December 31 6% During July, the following transactions were completed: July 5 Made sales of $4,300 on Crane credit cards. 14 Made sales of $500 on Visa credit cards. The credit card service charge is 3%. 20 Received payment in full from Coote Inc. on the amount due. 24 Received payment in full from Brady Co. on the amount due. (a) Prepare journal entries for the July transactions and the July 31 adjusting entry for accrued interest revenue. (Interest is computed using 360 days for terms expressed in days; omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to O decimal places, e.g. 5,275.) Date Account Titles Debit Credit Crane Company's year end is July 31. Crane prepares adjusting entries to accrue interest revenue annually. On June 30, the Notes Receivable account balance is $24,200 and the Credit Card Receivable account balance was zero. Notes receivable are as follows: Date Maker Face Value Term Maturity Date Interest Rate April 21 Coote Inc. May 25 Brady Co. $4,800 8,400 3 months July 20 8% 2months July 24 10% June 30 BMG Corp. 11,000 6 months December 31 6% During July, the following transactions were completed: July 5 Made sales of $4,300 on Crane credit cards. 14 Made sales of $500 on Visa credit cards. The credit card service charge is 3%. 20 Received payment in full from Coote Inc. on the amount due. 24 Received payment in full from Brady Co. on the amount due. (a) Prepare journal entries for the July transactions and the July 31 adjusting entry for accrued interest revenue. (Interest is computed using 360 days for terms expressed in days; omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to O decimal places, e.g. 5,275.) Date Account Titles Debit Credit

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