Question

CALCULATOR FULL SCREEN PRINTER VERSTON BACK NE Brief Exercise 215 White Distributors has the following transactions related to notes reolvable during the last two months of the year Dec. 1 16 Loaned $24.000 cash to Kinder on a 1-year 5 note Sold goods to Jones receiving a $2,200, 60-day, note Accrued interest revenue on all notes recevable Journalize the transactions for White Distributors (reaccounts an Record journal entries in the order presented in the problem d th i s t o not incat may 30 day for calculation

Answer 1

	Journal entry
Date	Accounts Title and Explanation	Debit $	Credit $
Decemebr 1	Loaned $24,000 cash to E. Kinder on a 1-year, 5% note.
	Notes Receivable	24,000
	Cash		24,000
	(To record,Cash of $24,000 Loaned to E. Kinder for a 1 year 5% note)
Decemebr 16	Sold goods to J. Jones receiving a $7,200, 60-day, 7% note
	Notes Receivable	7,200
	Sales		7,200
	(To record goods sold to J Jones and received a 60 day 7% note for $7,200)
Decemebr 31	Accrued Interest revenue on all notes receivable
	Interest Receivable	121
	Interest Revenue		121
	(To record accrual entry for Interest on notes receivable)
	Calculation of interest revenue receivable
	December 1 Note
	$24,000 x 5% x 1/12 month=$100
	December 16 Note
	$7,200 x 7% x 15/360 days=$21
	Interest revenue Receivable= $100+$21=$121