Question

Current Attempt in Progress These transactions took place for Blue Spruce Corp. 2021 May 1 Received a $3,400, 12-month, 6% 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 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 man journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Answer 1

Answer

Date	Account	Debit	Credit
May 1, 2021	Notes Receivable	$     35,000
	Accounts Receivable-R.Stoney		$   35,000
Dec. 31, 2021	Accrued Interest	$                136
	Interest revenue		136
May 1, 2022	cash	$ 3,604.00
	Notes Receivable		$     3,400
	Accrued Interest		$         136
	Interest revenue		$           68
Accrued Interest on Notes receivable on 31st December = 3400*6%*8/12 =		$                136
Interest on Notes receivable on 1st May 2022 = 3400*6%*4/12 =		$                  68