Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 9 years ago

Accounting question, please help!?

James supply co has the following transactions related to notes receivable during the last 2 months of the year:

nov1 - loaned $18,000 cash to B.smith on a one year,10%note

dec 1 sold goods to wright, inc receiving a $3,600,three month,6% note

dec.15 recieved a $4,000,six month,8% note on account from barns company

dec.31 accured interest revenue on all notes recievable interest is due at maturity

journalize the transactions for james supply co round your answers to the nearest dollar.

thank you and 10 points for best answer!

1 Answer

Relevance
  • JKRB
    Lv 7
    9 years ago
    Favorite Answer

    nov1 - loaned $18,000 cash to B.smith on a one year,10%note

    Dr Notes Receivable 18,000

    Cr Cash 18,000

    dec 1 sold goods to wright, inc receiving a $3,600,three month,6% note

    Dr Notes Receivable 3,600

    Cr Sales 3,600

    dec.15 recieved a $4,000,six month,8% note on account from barns company

    Dr Notes Receivable 4,000

    Cr Accounts Receivable 4,000

    dec.31 accured interest revenue on all notes recievable interest is due at maturity

    1st note: Two months has accrued

    18,000 x 10% x 2/12 = $300 Interest

    2nd note: One month has accrued

    3,600 x 6% x 1/12 = $18 Interest

    3rd note: One-half month (or 1/24 of a year) has accrued

    4,000 x 8% x 1/24 = $13 (rounded) Interest

    Dr Interest Receivable 331

    Cr Interest Revenue 331

    • Commenter avatarLogin to reply the answers
Still have questions? Get your answers by asking now.