Question

Notes Receivable Entries The following data relate to notes receivable and interest for Owens Co., a financial services company. (All notes are dated as of the day they are received.) Assume 360 days in a year Mar. 8. Received a $78,000,7%, 60-day note on account. 31. Received a $22,800, 10%, 90-day note on account. May 7. Received $78,910 on note of March 8. 16. Received a $68,400, 99, 90-day note on account. June 11. Received a $42,000, 12%, 30-day note on account. Received $23,370 on note of March 31. Received $42,420 on note of June 11. 29. July 26. Aug. 4. 14. Received a $2,400, 8%, 30-day note on account. Received $69,939 on note of May 16. Dec. 2. Received $2,416 on note of August 4. Required: Journalize the entries to record the transactions. For a compound transactions, if an amount box does not require an entry, leave it blank. Mar. 8

Answer 1

Credil Debil $ 78000 - $.32,800 $ 78000 822,800 Dale Journal entry Mares Notes Receivable Accounts Receivable Mar.39 Notes Receivable | Accounts Receivable May.] Cash Noles Receivable Interest Revenue. May 16 Notes Receivable Accounts Receivable June 14 Notes Receivable Accounts Receivable Tunery Cash, Notes Receivable. Interest Revenue, Julyno Cash - Notes Receivable Interest Revenue. Aug. 4 Notes Receivable " Accounts Receivable $ 78910 $ 78000 1s 910 $ 68400 - $ 68400 $ 42000 - $42000 F 23370 $ 92800 19 570 If 42420 $ 42000 $ 420 $ 2400 4 2400 1$ 69,939 Aug 14. Cash $68400 1539 Dec. 2 - Noles Receivable 1. Interest Revenue Cash Noles Receivable Intereel Revenue 2416 $ 2400 816

Explanations : * Man 7 : Interest Revenue ! +(.78000 X 7:). X60/360) Ep 910 1 * June 29 : Interest Revenue (€22800X10-9,X90/360) = $570 * July 26 : Interest Revenue ($ 42000 X 120%. X30/360) 3. 420 * Aug 14 : Interest Reverwe el 68400 x 9.4. X 90/360) - $ 1539 I * Deen a Interest Revenue ($ 2400 X &; X.3013601 a &16