Question: Notes Receivable On September 1, 2017, Dougherty Corp. accepted a six-month, 7%, $46,200 interest-bearing note from Rozelle Company in payment of an account receivable. Dougherty's
Notes Receivable
On September 1, 2017, Dougherty Corp. accepted a six-month, 7%, $46,200 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.
Required:
3. Identify and analyze the effect of the transactions or adjustments to be recorded on each of the following dates:
a. September 1, 2017
| Activity | Investing / operating/ financing |
| Accounts | Notes Receivable Increase/decrease, Accounts Receivable Increase/decrease |
| Statement(s) | Balance Sheet only/ income statements / both |
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 financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign.
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| fill in the blank | fill in the blank
| fill in the blank | fill in the blank | fill in the blank | fill in the blank | |||||||||
| fill in the blank | fill in the blank
| fill in the blank | fill in the blank | fill in the blank | fill in the blank | |||||||||
b. December 31, 2017
| Activity | |
| Accounts | |
| Statement(s) |
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 financial 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 final answer to the nearest dollar.
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| fill in the blank | fill in the blank | fill in the blank | fill in the blank | fill in the blank | fill in the blank | |||||||||
c. March 1, 2018
| Activity | |
| Accounts | |
| Statement(s) |
How does this entry affect the accounting equation?
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