Question

Year 1 Dec. 16 Accepted a $12,000, 60-day, 10% note in granting Jose Garcia a tine extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Garcia note. 17 Year 2 Feb. 14 Received Garcia's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $7.00, lex, 90-day note in granting a time extension on the past-due account receivable from Martin Co. Accepted a $3.eee, 3e-day, 10 note in granting Debbie Hall a time extension on her past-due account receivable. Apr. 16 Hall dishonored her note. May 31 Martin Co. dishonored its note. Aug. 7 Accepted a 58,800, 9e-day, 8% note in granting a time extension on the past-due account receivable of Sanchez Co. Sep. 3 Accepted a $3,000, 6e-day, 10% note in granting Robert King a time extension on his past-due account receivable. Nov. 2 Received payment of principal plus interest fron king for the September 3 note. Nov. S Received payment of principal plus interest from Sanchez for the August 7 note. Dec. 1 wrote off the Hall account against the Allowance for Doubtful Accounts. Requirement General Journal General Ledger Trial Balance Schedule of Newables Calculation of rest General Journal tab. Prepare the Year 2 journal entries related to the notes and accounts receivable of Brown Co Calculation of interest tab - Use the interest formula (PxRxT) to verify the amount of interest recorded in your entries. Verify that total interest revenue agrees with the trial balance.

I dont know how to do the general journal

Answer 1

Date Accounts 14-Feb Bank Note Receivable Accrued interest Interest Revenue (Being Principal and interest received from Gracia) Debit ($) Credit ($) 12,200 12,000 50 150 7,000 2-Mar Note Receivable Account Receivable (Being Note accepted from Martin Co.) 7,000 Hid 3,000 17-Mar Note Receivable Accounts Receivable (Being Note accepted from Debbie Hall) 3,000 3,025 16-Apr Accounts Receivable Note Receivable Interest Revenue (Being Note dishonoured by Hall on maturity) 3,000 25 7,175 31-May Accounts Receivable Note Receivable Interest Revenue (Being Note dishonoured by Martin ) 7,000 175 8,000 8,000 7-Aug Note Receivable Accounts Receivable | Scanf(Beng Note accepted from Sanchos Co.) I Camp.canner

3-Sep Note Receivable Accounts Receivable (Being Note accepted from Robert King) 3,000 3,000 WA 3,050 2-Nov Bank Note Receivable Interest Reenue (Being Principal and interest received from Robert King on on maturity) 3,000 50 8.160 8,000 5-Nov Bank Note Receivable Interest Revenue (Being Principal and interest received from Sanchoz Co. on maturity) 160 3,025 3,025 1-Dec Allowance for Doubtful Debts Accounts Receivable Being all aic written off) GamScanner -- - - - - - - - --

10% Calculation of Interest 1. Gracia Amount 12000 Rate Month No. of days Working Dec 15 =12000-10%-15/360 Jan 31 - 12000*10% 31/360 14 =12000*10% 14/360 60 WA 2. Hall Working Amount 3000 =3000*10% 30/360 Rate 10% Days 60 erest Note 50 Accrued Interest 103 Interest Income 47 Interest Income 200 Feb Interest 251 Interest 175 3. Martin Amount Rate Days Working 7000 = 7000-10%-90/360 10% 90 Intere 4. Robert King Amount Rate Days Working 3000 =3000*10%60/360 10% 60 5. Sanchos Co. Amount Rate Daysnned with a Can Seanade Working 8000 =8000-8%-90/360 8% 90 Interest 160