Question

there is page 2019 and 2020

Marydale Products permits its customers to defer payment by giving personal notes instead of cash. All the notes bear interest and require the customer to pay the entire note in a single payment 6 months after issuance. Consider the following transactions, which describe Marydale's experience with two such notes: a. On October 31, 2019, Marydale accepts a 6-month, 12% note from Customer A in lieu of a $5,400 cash payment for services provided that day. b. On February 28, 2020, Marydale accepts a 6-month, $1,800, 5% note from Customer B in lieu of a $1,800 cash payment for services provided on that day. c. On April 30, 2020, Customer A pays the entire note plus interest in cash. d. On August 31, 2020, Customer B pays the entire note plus interest in cash. Required: Prepare the necessary journal and adjusting entries required to record Transactions a through d in Marydale's records.

Answer 1

Date	Account Titles	Debit	Credit	Assets	Liabilities	Equity	Revenue	Expenses	Net Income
Oct-31	Notes Receivable	$              5,400		I
	Sales Revenue		$            5,400			I	I		I
	(Accepted notes receivable for services provided)
Dec-31	Interest Receivable	$                 108		I
	Interest Revenue		$               108			I	I		I
	(Interest accrued for 2 months)
Feb-28	Notes Receivable	$              1,800		I
	Sales Revenue		$            1,800			I	I		I
	(Accepted notes receivable for services provided)
Apr-30	Cash	$              5,724		I
	Notes Receivable		$            5,400	D
	Interest Receivable		$               108	D
	Interest Revenue		$               216			I	I		I
	(collected note)
Aug-31	Cash	$              1,845		I
	Notes Receivable		$            1,800	D
	Interest Revenue		$                 45			I	I		I
	(collected note)