Question

rent Attempt In Progress Sunland Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31 Nov. 1 Laaned $63,600 cash to C. Bohr on a 12-month, 9% note. Dec 11 Sold goods to K.R.Pine, Inc. receiving a $5,400, 90-day, 8% note. 16 Received a $14.400, 180 day, 6 note to settle an open account from A. Murdock. 31 Accrued interest revenue on all not receivable Journalize the transactions for Surland calit cost of goods sold entries) Oedit account tles are automatically indented when amount is entered. Do not indent manual Record Journal entries in the order presented problem. Use 360 days for calculation) Date Account Titles and Explanation Debit Credit

Answer 1

Journal Entries Nov ist da al. Notes Receivable Cash / Bank the Debit $ 63600 Credit $63600 Dec 4th 8/ sales Notes Receivable $5400 Revenue winga $5460. Dec 16th 67. Notes Receivable A. Murdock $14400 25 $14400 Interest qol Notes Revenue. Receivable = $63600 X Q/ = $954 360 Sl. Notes Receivable = $5400X &/X - $24 Cassumed dodays) 6-1 Notes Receivable - $luuoo X 64. X $36 Total interest = $954 + $24 +36 = 1014. 360 Dec 31st Accrued Interest interest revenue $1014 $1014