Question

Moses Supply 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 Loaned $60,000 cash to C. Bohr on a 12-month, 7% note. Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $3,600, 90-day, 8% note. 16 Received a $12,000, 180-day, 9% note to settle an open account from A Murdock. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Moses Supply Co. (Omit cost of goods sold entries.) (Credit account titles are automatically Indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Use 360 days for calculation) Date Account Titles and Explanation Debit Credit

Answer 1

Moses Supply Co.
Journal entries
Date	Account	Debit	Credit	Calculation
1-Nov	Notes Receivable - C. Bohr	$     60,000
	Cash		$     60,000
11-Dec	Notes Receivable - K. R. Pine, Inc.	$        3,600
	Cash		$        3,600
16-Dec	Notes Receivable - A. Murdock	$     12,000
	Accounts Receivable - A. Murdock		$     12,000
31-Dec	Interest Receivable	$           761
	Interest Revenue		$           700	=60,000*7%*2/12
	Interest Revenue		$              16	=3,600*8%*20/360
	Interest Revenue		$              45	=12,000*9%*15/360
	Note
	Bohr Note - 2 months from 1st Nov to 31st Dec
	Pine Note - 20 days from 11th Dec to 31st Dec
	Murdock Note - 15 days from 16th Dec to 31st Dec