Novak Company had the following select transactions. Apr. 1, 2019 Accepted Goodwin Companys 12-month, 16% note in
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Apr. | 1, | 2019 | Accepted Goodwin Company’s 12-month, 16% note in settlement of a $98,600 account receivable. | |
July | 1, | 2019 | Loaned $100,600 cash to Thomas Slocombe on a 9-month, 14% note. | |
Dec. | 31, | 2019 | Accrued interest on all notes receivable. | |
Apr. | 1, | 2020 | Received principal plus interest on the Goodwin note. | |
Apr. | 1, | 2020 | Thomas Slocombe dishonored its note; Novak expects it will eventually collect. |
Prepare journal entries to record the transactions. Novak prepares adjusting entries once a year on December 31.
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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