Question

3. Record the following transactions for Lucea Corporation (7 marks):

Jul     1     Received an $8,000, 3%, 3-month note, dated July 1, from Frank Baker in payment of his open account. Interest is due at maturity.

Oct    1     Received notification from Frank Baker that he is unable to honour his note at this time. It is expected that Baker will pay at a later date.

Nov 15     Received full payment from Frank Baker for note receivable previously dishonoured.

Answer 1

Thank you

Date Paras Debit Cacat And I Date Titter & Explanation Accocents $ 800 Jul 1 $800 noles Receivable Accounts Receivable - Frank Baker To record acceptance of Frank baker note as pagment on laccant .. $8060 sep 30 $ 800 Accounts receivable - Frank Baker notes Receivable Interest revenue (806x37.*2) - to record dishonoured note). 8060 Nov 15 Cash Accounts to record _ L Receivable- Fran bakes payment on account] $8060

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