Notes Receivable

On September 1, 2017, Dougherty Corp. accepted a six-month, 7%, $31,200 interest-bearing note from Rozelle Company in payment of an account receivable. Dougherty's year-end is December 31. Rozelle paid the note and interest on the due date. Assume 360 days in the year.

\f\fb. December 31, 2017 Activity 9%; \\I Accounts Interest Receivable Increase Interest Revenue Decrease ' X Statement(s) Balance Sheet and Income Statement ' J How does this entry affect the accounting equation? If a financial statement item is not affected, select \"No Entry" and leave the amount box blank. If the effect on a nancial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Do not round intermediate calculations. If required, round your nal answer to the nearest dollar. Ba nce Sheet Income State ent Stuckhnlders' Net Assets : Liabilities + Equity Revenues * Expenses : Income ( No Entry v J [:l J No Entry v J :l I \\I Interest Revenue ' J est Receivable v y] 1 c. March 1, 2018 Activity 9m; V Accounts Cash Decrease Notes Receivable Decrease Interest Receivable Decrease Interest Revenue Increase ' x Statement(5) Balance Sheet and Income Statement ' J c. March 1, 2018 Actiwty 9% V Cash Decrease Notes Receivable Decrease Interest Receivable Decrease Interest Revenue Increase V X Accuunts > Statement(s) Balance Sheet and Income Statement V How does this entry affect the accounting equatlon? If a Flnanclal smtement Item ls not affected, select "No Entry" and leave the amount box blank. If the effect an a nancial statement item ls hegatlve, l.e, a decrease, be sure to enter the answer with 5 mm: slgn. Do not ruund intermediate calculations. If requlred, round yuur nal answer to the nearest dollar. Balance Sheet Incl) e Statement Stockholders' Net Assets = Liabilities + Equity Revenues 7 Expenses = Income l1 V J J No Entry V V C] V Cash V X No Entry V 4 :l J :rest Revenue V X x No Entry V \\l C] Interest Receivable V X No Entry V '1 :l J X as Receivable V y/ x No Entry V J C] J Accounts Receivable V X No Entry V '1 :l \\I