Question

the numbers in the 3rd box is wrong, unsure how to compute

The following selected transactions occurred during 2016 and 2017 for Baltic Importers. The company ends its accounting year on September 30. (Click the icon to view the transactions.) Journalize all required entries. Make sure to determine the missing maturity date. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Jul. 1: Loaned $13,000 cash to Brandy Tell on a one-year, 8% note. Date Debit Credit Accounts and Explanation Note Receivable-Brandy Tell 2016 13,000 Jul. 1 Cash 13,000 Accepted note in exchange for cash. Sep. 6: Sold goods to Lawn Pro, receiving a 90-day, 12% note for $6,000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit 2016 Note Receivable—Lawn Pro 6,000 Sep. 6 Sales Revenue 6,000 More Info Sold goods for a note. Sep. 30: Made a single entry to accrue interest revenue on both notes. (Use months for the one-year note interest computation and a 360-day year for the 90 day note interest computation.) Debit Credit Date Accounts and Explanation 2016 Interest Receivable Sep. 30 Interest Revenue 1220 2016 Jul. 1 Loaned $13,000 cash to Brandy Tell on a one-year, 8% note. Sep. 6 Sold goods to Lawn Pro, receiving a 90-day, 12% note for $6,000. Ignore Cost of Goods Sold. Sep. 30 Made a single entry to accrue interest revenue on both notes. ? Collected the maturity value of the Lawn Pro note. 2017 Collected the maturity value of the Tell note. 1230 Jul. 1 Sold goods for a note. Print Done

Answer 1

Interest accrues on 1st note for 3 months as on September end

Interest on 1st note = 13000 * 0.08 * 3/12 = 260

Interest accrues on 2nd note for 24 days as on September end

Interest on 2nd note = 6000 * 0.12 * 24/360 = 48

Total interest accrued = 260 + 48 = 308

Journal:

Interest Receivable 308

Interest Revenue 308

(Being Interest accrued)