Question

accrued interest

Practice Question 4 < Previous Reset Ne View Policies Show Attempt History Current Attempt in Progress Your Answer Correct Answer - Your answer is partially correct. Skysong, Inc. has the following transactions related to notes receivable during the last 2 months of the year. The company not make entries to accrue interest except at December 31. (Omit cost of goods sold entries.) Nov. 1 Loaned $55.200 cash to C. Bohr on a 12-month, 6% note. Dec 11 Sold goods to K. R. Pine, Inc.receiving a $3,600,90-day, 6% note. Dec 16 Received a $16.800, 180-day, 119 note to settle an open account from A. Murdock Dec 31 Accrued interest revenue on all notes receivable.

Answer 1

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Statement showing Computations
Particulars	Debit	Credit
Nov 01
Note receivable Dr	55,200.00
To cash		55,200.00
Dec 11
Note receivable Dr	3,600.00
To Sales revenue		3,600.00
Dec 16
Note receivable Dr	16,800.00
To Account receivable		16,800.00
Dec 31
Interest receivable Dr	639.78
To Interest revenue		639.78
Interest Accrual Calculation
Nov 01 Note= 55200*6%*2/12	552.00
Dec 11 Note= 3600*20/365*6%	11.84
Dec 16 Note= 16800*15/365*11%	75.95
Total Interest Accrued assuming 365 days in a year	639.78