Question

E8-22 Journalizing credit sales, note receivable transactions, and accruing interest Endurance Running Shoes reports the following: \02 2018 May 6 Recorded credit sales of $102,000. Ignore Cost of Goods Sold. Jul. 1 Loaned $18,000 to Jerry Paul, an executive with the company, on a one-year, 7% note.e Jd NR cl-Ccsn Dec. 31 ACcrued interest revenue on the Paul note. 2019 cetle idner a Collected the maturity value of the Paul note. Jul. 1 Journalize all entries required for Endurance Running Shoes.

Answer 1

Solution:

Journal Entries - Endurance running shoes
Date	Particulars	Debit	Credit
6-May-18	Accounts receivables Dr	$102,000.00
	To Sales revenue		$102,000.00
	(To record sales revneue)
1-Jul-18	Note receivables Dr	$18,000.00
	To Cash		$18,000.00
	(Being loan given)
31-Dec-18	Interest receivables Dr ($18,000*7%*6/12)	$630.00
	To Interest revenue		$630.00
	(To record interest accrued)
1-Jul-19	Cash Dr	$19,260.00
	To Interest revenue		$630.00
	To Interest receivables		$630.00
	To Note receivables		$18,000.00
	(To record receipt of note at maturity)