Question

These transactions took place for Skysong, Inc.

2021
May	1		Received a $3,300, 12-month, 7% note in exchange for an outstanding account receivable from R. Stoney.
Dec.	31		Accrued interest revenue on the R. Stoney note.
2022
May	1		Received principal plus interest on the R. Stoney note. (No interest has been accrued since December 31, 2021.)

Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.(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
Choose a transaction date May 1, 2021Dec. 31, 2021May 1, 2022	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
Choose a transaction date May 1, 2021Dec. 31, 2021May 1, 2022	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
Choose a transaction date May 1, 2021Dec. 31, 2021May 1, 2022	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount

Answer 1

Solution:

Debit Credit In the Books of Skysong Inc Date Particulars 01-May-21 Notes Receivable - R.Stoney Accounts Receivable - R Stoney (To record the receipt of note on account 3300 3300 154 Dec-31 Interest Receivable Interest Revenue (To record the accrual of interest for 8 months = 3300*7%*8/12) 154 3531 3300 01-May-21 Cash Notes Receivable Interest Receivable Interest Revenue (9000*7%*4/12) 154 77

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