Question

Exercise 9-12 a-b Sheridan Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 16 31 Loaned $21,600 cash to Manny Lopez on a 12-month, 10% note. Sold goods to Ralph Kremer, Inc., receiving a $54,000, 90-day, 8% note. Received a $53,280, 180 day, 10% note in exchange for Joe Fernetti's outstanding accounts receivable. Accrued interest revenue on all notes receivable. Journalize the transactions for Sheridan Supply Co. (Ignore entries for cost of goods sold.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Use 360 days for calculation. Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT
Please try to keep the same format!

Answer 1

Journal entries for Sheridan Supply Co. Date Account Tiller le faplanation Debit Credil Nov. 1 Notes Receivable $ 81600 - Cash $ 21600 Dec. It Notes Receivable $ 54000 Sales Revenue. | $ 54000 Dec. 16 Notes Receivable $53280 Accounts Receivable - $53280 Dec. 31 Interest Receivable 9822 Interest Revenue. $ 822 Explanations : Compulation of interest revenue hopez Note :($21600 x 1069. X 8/12) = $ 360 Kremer Note : 1$ 5 4000x 84. X 20/360) - $ 240 ferenetlinate: {{ 53280X 106 X 45/360) =$ 222 Total accrued onlenesde $ 822 * Days ein Notes: hopez Note : Nout to Dec. 31: 2 month so 2/12. Kremer Noteo Deeds to Dec 31 - 2oclays $0.20/360 Fernetti Note - Dec 16 to Dee 31- 15 days so 15/360 .

Cicealet Recoroling the collection of the hopez note ad Tits maturety en 2021. Doodle Accountstellen e fizplanificare Debit Nov.1 Cash 983760 Noter Receivable Interest Revenue Patercrest Receivable 1$ 21600 1800 EG 360 ! Explanadliong * Interest Receivable =($21600 x 10^%* 8/12) o 8360 * Interest Revenire. = ($41600X10 4X10/12) $ 1800