Question

Assignment Exercise 8-11 Record the following transactions for Redeker Co. in the amount is entered. Do not indent manually.) entries in the order presented in the problem credit accounts are for Mark Chamber's outstanding accounts receivable 2017 May Dec Dec 2013 May 1 31 31 Received a 540, 50, 12 months, 12 note in exch Accrued interest on the Chamber note Closed the best revenge account. 1 Received principal plus interest on the Chamber note (No interest has been credin 2018) Date Account Thies and Explanation

Answer 1

Solution:

Journal Entries - Redeker Co.
Date	Particulars	Debit	Credit
1-May-17	Note receivables Dr	$40,950.00
	To Accounts receivables		$40,950.00
	(To record note receivables)
31-Dec-17	Interest receivables Dr	$3,276.00
	To Interest revenue		$3,276.00
	(To record accrued interest)
31-Dec-17	Interest revenue Dr	$3,276.00
	To Income summary		$3,276.00
	(To close interest revenue account)
1-May-18	Cash Dr	$45,864.00
	To Note receivables		$40,950.00
	To Interest receivables		$3,276.00
	To Interest revenue		$1,638.00
	(To record collection at maturity)