Question

RCES Exercise 8-10 Skysong, Inc. has the following transactions related to notes receivable during the last 2 months of the year. The company does 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, 11% note to settle an open account from A. Murdock. Dec. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Skysong, Inc. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit py Study SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: SHILAR EXERCISE

Answer 1

Nov 1	Notes Receivable	55200
	Cash		55200
Dec 11	Notes Receivable	3600
	Sales Revenue		3600
Dec 16	Notes Receivable	16800
	Accounts Receivable		16800
Dec 31	Interest Receivable	641
	Interest Revenue		641
	Workings:
	C Bohr Note	552		=55200*6%*2/12
	KR Pine Inc note	12		=3600*6%*20/360
	A Murdock note	77		=16800*11%*15/360
	Interest Receivable	641
It is assumed 360 days in a year