Question

*Problem 8-8A Milton Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30 the Notes Receivable account balance is $23,800. Notes Receivable include the following Face Value Maturity Date Term $6,000 90 days July 20 7,800 60 days July 24 Interest Rate 8% 10% 6% Date Maker -DateMake Coote Inc. Brady Co. BMG Corp. April 21 May 25 June 30 10,000 6 months December 31 During July, the following transactions were completed Made sales of $4,500 on Milton Company credit cards. Made sales of $600 on Visa credit cards. The credit card service charge is 3%. Received payment in full from Coote Inc. on the amount due. Received payment in full from Brady Co. on the amount due. July 5 14 20 24 Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of goods sold entries.) (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 Accounts Receivable 4500 4500 July 14 582 Charge Expense 18 600 July 20 Cash 6120 Notes Receivable 6000 Revenue 120 July 24 Cash 7930 Notes Receivable 7800 130 July 31 50 50 Enter the balances at July 1 in the receivable accounts and post the entries to all of the receivable accounts. (Post entries in the order of journal entries posted in the previous part.)

Answer 1

Answers

• All working forms part of the answer
• Journal Entries are already recorded by you and are found to be correct and complete.
• Remaining requirements are provided below:
• Posting to Account:

Notes Receivables
1 Jul Balance [Beginning]	$               23,800.00	20-Jul	$                          6,000.00
		24-Jul	$                          7,800.00
Ending Balance 31 Jul	$ 10,000 Debit balance
Accounts receivables
Jul-05	$                 4,500.00
Ending Balance 31 Jul	$ 4,500 Debit Balance
Interest Receivables
Jul-31	$                       50.00
Ending Balance 31 Jul	$ 50 Debit Balance

• Partial Balance Sheet

Balance Sheet (Partial)
as at 31 Jul year end
Current Assets:
Accounts receivables	$                 4,500.00
Notes Receivables	$               10,000.00
Interest Receivables	$                       50.00
Total Current Assets	$               14,550.00