Question

Exercise 8-12 a-b Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. Nov, 1 Dec. 11 Loaned $30,000 cash to Manny Lopez on a 12 month, 10% note. Sold goods to Ralph Kremer, Inc., receiving a $6,750, 90-day, 8% note. Received a $4,000, 180 day, 9% note in exchange for Joe Fernetti's outstanding accounts receivable. 16 31 Accrued interest revenue on all notes receivable Journalize the transactions for Elburn Supply Co. (Credit account titles are automatically indented unt is entered. Do not indent manually. Use 360 days for calculation. Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Nov 1	Notes Receivable	30,000
	Cash		30,000
Dec 11	Notes Receivable	6,750
	Sales		6,750
Dec 16	Notes Receivable	4,000
	Accounts Receivable		4,000
Dec 31	Interest Receivable	545
	Interest Revenue		545
	Working
Nov 1	Notes Receivable	500
	(30,000 x 10% x 2/12)
Dec 11	Notes Receivable	30
	(6,750 x 8% x 20/360)
Dec 16	Notes Receivable	15
	(4,000 x 9% x 15/360)
		545
Date	Account Titles and Explanation	Debit	Credit
Nov 1	Cash	33,000
	Notes Receivable		30,000
	Interest Receivable		500
	Interest Revenue		2,500