Question

 Samberg Inc, had the following transactions.

 a. Oct. 1-Sold $13,000 of merchandise on account, 110, n/30 to McCormick Industries.

 b. Nov. 1- Received a $13,000, 90-day, 9% note from McCormick Industries to settle its $13,000 unpaid balance. c. Dec. 31- Accrued interest on the note. (Round your answer to the nearest whole dollar amount.)

 d. Jan. 31- Received the interest on the note's maturity date.

 e. Jan. 31- Received the principal on the note's maturity date. (Round your answer to the nearest whole dollar amount.)

 Required:

 Prepare the required journal entries.

 A Record the entry for sale of merchandise on account to MCormick Industries.

 B Record the entry for acceptance of promissory note in exchange of accounts receivable from McCormick Industries.

 C Record the entry for interest accrued on promissory note received from MCormick Industries.

 D Record the entry for interest received, from McCormick Industries, on the note's maturity date.

 E Record the entry for payment received from McCormick Industries the principal on the note's maturity date.

Answer 1

SOLUTION

Date	Accounts titles and Explanation	Debit ($)	Credit ($)
Oct.1	Accounts receivable	13,000
	Sales revenue		13,000
	(To record sales on account))
Nov.1	Note receivable	13,000
	Accounts receivable		13,000
	(To record notes received for accounts receivable)
Dec.31	Interest receivable	98
	Interest income (13,000*9%*1/12)		98
	(To record accrued interest)
Dec.31	Cash	293
	Interest receivable		98
	Interest income (13,000*9%*2/12)		195
	(To record interest received on maturity)
Dec.31	Cash	13,000
	Notes receivable		13,000
	(To record cash received on maturity of note)