Question

Exercise 8-13 Partially correct answer. Your answer is partially correct. Try again. Record the following transactions for Cullumber Company in the general journal. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Record the following transactions for Cullumber Company in the general journal. (Credit account titles are automatically indented w problem.) 2019 1 Received a $6,000, 12-months, 8% note in exchange for Mark Chamber's outstanding accounts receivable. May Dec 31 Accrued interest on the Chamber note Dec. 31 Closed the interest revenue account. 2020 1 Received principal plus interest on the Chamber note. (No interest has been accrued in 2020.) May Account Titles and Explanation Date Debit Credit Notes Receivable May 1, 2019 6000 6000 Accounts Receivable 480 Dec. 31, 2019 |Interest Receivable 480 Interest Revenue (To record accrued interest on note.) Dec. 31, 2019|Interest Revenue 480 Retained Earnings 480 (To close the interest revenue account.) Cash May 1, 2020 6720 6000 Notes Receivable 480 Interest Receivable 240 Interest Revenue Click if you would like to Show Work for this question: Open Show Work

Answer 1

		Debit	Credit
May 1,2019	Notes Receivable	6000
	Accounts Receivable		6000
Dec 31,2019	Interest Receivable	320		=6000*8%*8/12
	Interest Revenue		320
	(To record accrued interest)
Dec 31,2019	Interest Revenue	320
	Income Summary		320
	(To close interest revenue account)
May 1,2020	Cash	6480
	Notes Receivable		6000
	Interest Receivable		320
	Interest Revenue		160	=6000*8%*4/12