Question: Im having a hard time with this problem On April 15, 2018, Sampson Consulting provides services to a customer for $108,000. To pay for the
Im having a hard time with this problem
On April 15, 2018, Sampson Consulting provides services to a customer for $108,000. To pay for the services, the customer signs a three-year, 10% note. The face amount is due at the end of the third year, while annual interest is due each April 15. [Hint: Because the note is accepted during the middle of the month, Sampson plans to recognize one-half month of interest revenue in April 2018, and one-half month of interest revenue in April 2021.] Required 1. Record the acceptance of the note on April 15, 2018 2. Record the interest collected on April 15 for 2019 and 2020, and the adjustment for interest revenue on December 31, 2018, 2019, and 2020 3. Record the cash collection on April 15, 2021. Prepare the journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the cash collection. Note: Enter debits before credits. Date General Journal Debit Credit April 15, 2021 Record entry Clear entry View general journal
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
