Question

Moore Distributors has the following transactions related to notes receivable during the last two months of the year. Dec. 1 Loaned $18,000 cash to E. Kinder on a 1-year, 6% note. 16 Sold goods to J. Jones, receiving a $7,200, 60-day, 7% note. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Moore Distributors. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Use 360 days for calculation. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Answer 1

Credit Date Account Titles and Explanation Dec.l Notes Receivable Cash Debit 18,000 $ $ 18,000 $ 7,200 Dec.16 Notes Receivable Sales Revenue $ 7,200 S 111 Dec. 31 Interest Receivable Interest Revenue S 111 Working Notes: Interest Revenue = ($18,000*6%*30/360)+($7.200*7%*15/360) = $90 + $21 = $111