Exercise 8 -17
Date | Particulars | Debit | Credit |
October 31 | Note receivable a/c | 15000 | |
To Leann Grimes a/c | 15000 | ||
(Notes receivable being accepted in lieu of past due) | |||
December 31 | Interest receivable a/c(15000*4.5%*2/12) | 112.50 | |
To Interest income a/c | 112.50 | ||
(Interest income for 2 months being recognized) | |||
April 30 | Cash a/c | 15337.50 | |
To Notes receivable a/c | 15000 | ||
To Interest receivable a/c | 112.50 | ||
To Interest income a/c(15000*4.5%*4/12) | 225.00 | ||
(Notes receivable being paid along with interest for 6 months) | |||
Exercise 8-15
1.
Interest income upto December 31 is recognized due to Revenue realization principle(Generally accepted accounting principle) as per which income is recongnized in the period in which it is incurred.Interest is earned on the notes receivable and is a receivable income even thougn it is actually realized on due date.
2.
Note receivable A = 4 months(September to December)
Note receivable B = 1 month(For December which is payable on January 1)
3.
Date | Particulars | Debit | Credit |
December 31 | Interest receivable(Note A) a/c(690000*6%*4/12) | 13800 | |
To Interest income a/c | 13800 | ||
(Interest income for 4 months being recognized) | |||
Interest receivable(Note B) a/c(395000*4.5%*1/12) | 1481.25 | ||
To Interest income a/c | 1481.25 | ||
(Interest income for 1 months being recognized) |
Exercke 8.17 Honouring a note LOA Prepare journal entries to record these transactions (round the answer...
Exercise 8-16 Dishonouring a note L04 Prepare journal entries to record these transactions Mar. Sept. Dec 21 Accepted a $6,200, six-month, 4% note dated today from Bradley Brooks in granting a time extension on his past-due account 21 Brooks dishonoured his note when presented for payment. 31 After exhausting all legal means of collection, wrote off Brooks's account against the Allowance for Doubtful Accounts. Exercke 8.17 Honouring a note L04 Prepare journal entries to record these transactions (round the answer...
Exercise 8-17 Honouring a note LO4 Prepare journal entries to record these transactions: (Round your answers to 2 decimal places.) Oct. 31 Accepted a $23,500, six-month, 6.0% note dated today from Leann Grimes in granting a time extension on her past-due account. Dec. 31 Adjusted the books for the interest due on the Grimes note. Apr. 30 Grimes honoured her note when presented for payment. Ne
Exercise 8-17 Honouring a note LO4 Prepare journal entries to record these transactions: (Round your answers to 2 decimal places.) Oct 31 Accepted a $19,000, six-month, 6.00 note dated today from Leann Grimes in granting a time extension on her past-due account. Dudu Adjusted the books for the interest due on the Grimes note. Apr 30 Grimes honoured her note when presented for payment. View transaction list View journal entry worksheet Credit Date Oct 31 General Journal Notes receivable-Leann Grimes...
exercise 7-13
Check Det Revenue 838 Refer to the information in Exercise 7-11 and prepare the journal entries for the following selected trans actions of Danica Company for 2017 Exercise 7-12 Notes receivable transactions P4 2017 Check Tart a Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Mar. 3 Accepted a $5.000, 10%, 90-day note dated March 3 in granting a time extension on the past due account receivable of Tomas Company 17...
The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1Dec.16Accepted a $10,800, 60-day, 8% note in granting Danny Todd a time extension on his past-due account receivable.31Made an adjusting entry to record the accrued interest on the Todd note.Year 2Feb.14Received Todd’s payment of principal and interest on the note dated December 16.Mar.2Accepted a $6,100, 8%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co.17Accepted a $2,400, 30-day, 7% note in granting Ava...
The following selected transactions are from Ohlm Company 2014 Accepted a $10,800, 60-day, 8% note dated this day in granting Danny Todd a time extension on his past-due account receivable. Dec. 16 31 Made an adjusting entry to record the accrued interest on the Todd note 2015 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16 Mar. 2 Accepted a $6,100, 89, 90-day note dated this day in granting a time extension on the...
The following selected transactions are from Ohlm Company 2014 Accepted a $10.800, 60-day, 8% note dated this day in granting Danny Todd a time extension on his past-due account receivable. Dec. 16 31 Made an adjusting entry to record the accrued interest on the Todd note 2015 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16 Mar. 2 Accepted a $6,100, 89, 90-day note dated this day in granting a time extension on the...
use those calculated values to prepare journal entries
with second photo please
Check my work Following are transactions for Vitalo Company. Nov. 1 Accepted a $9,000, 180-day, 98 note from Kelly White in granting a time extension on her past-due account receivable. Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the white note. Apr. 30 White honored her note when presented for payment. Complete the table to calculate the interest amounts at December 31st and April...
exercise 7-13
Check Det Revenue 838 Refer to the information in Exercise 7-11 and prepare the journal entries for the following selected trans actions of Danica Company for 2017 Exercise 7-12 Notes receivable transactions P4 2017 Check Tart a Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Mar. 3 Accepted a $5.000, 10%, 90-day note dated March 3 in granting a time extension on the past due account receivable of Tomas Company 17...
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