Question

Notes Receivable Entries The following data relate to notes receivable and interest for Owens Co., a financial services company, Assume a 360-day year. (All notes are dated as of the day they are received.) Mar. 8. Received a $33,000, 5%, 60-day note on account. 31. Received an $80,000, 7%, 90-day note on account. May 7. Received $33,275 on note of March 8. 16. Received a $72,000,7%, 90-day note on account. June 11. Received a $36,000, 6%, 45-day note on account. 29. Received $81,400 on note of March 31. July 26. Received $36,270 on note of June 11. Aug. 4. Received a $48,000, 9%, 120-day note on account. 14. Received $73,260 on note of May 16. Dec. 2. Received $49,440 on note of August 4. Required: Journalize the entries to record the transactions. If an amount box does not require an entry leave it blank. Mar. 8 Notes Receivable Accounts Receivable Mar. 31 Notes Receivable Accounts Receivable May 7 Cash Notes Receivable Interest Revenue Previous Check My Work Type here to search o B Ê Ê 9

Answer 1

Solution Debit Credit Date March 8 General Journal Notes Receivable Accounts Receivable (To record receipt of note on account) $33,000 $33,000 March 31 $80,000l Notes Receivable Accounts Receivable (To record receipt of note on account) $80,000 May 7 $33,275 Cash Notes Receivable Interest Revenue ($33,000 x 5% x 60/360) (To record cash received on note at due date) $33,000 $275 May 16 $72,000 Notes Receivable Accounts Receivable (To record receipt of note on account) $72,000 $36,000 June 11Notes Receivable Accounts Receivable (To record receipt of note on account) $36,000 June 29 $81,400 Cash Notes Receivable Interest Revenue ($80,000 x 7% x 90/360) (To record cash received on note at due date) $80,000 $1,400 July 26 $36,2701 Cash Notes Receivable Interest Revenue (To record cash received on note at due date) $36,000 $270 August 4 $48,000 Notes Receivable Accounts Receivable (To record receipt of note on account) $48,000 August 14 $73,260 Cash Notes Receivable Interest Revenue ($72,000 x 7% x 90/360) (To record cash received on note at due date) $72,000 $1,260 Dec. 2 $49,4401 Cash Notes Receivable Interest Revenue ($48,000 x 9% x 120/360) (To record cash received on note at due date) $48,000 $1,440