Question

These transactions took place for Bramson Co. 2021 May 1 Received a $5,000, 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 R. Stoney note. (No interest has been accrued since December 31, 2021.) port Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.[Credit account titles are autom 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

Answer 1

Journal

Date	Account Title and Explanation	Debit	Credit
May 1, 2021	Note receivable	5,000
	Accounts receivable - R. Stoney		5,000
Dec 31, 2021	Interest receivable	200
	Interest revenue		200
May 1, 2022	Cash	5,300
	Interest receivable		200
	Interest revenue		100
	Note receivable		5,000

Interest revenue on December 31, 2021 = 5000 x 6% x 8/12

= $200

Interest revenue on May 1, 2022 = 5000 x 6% x 4/12

= $100

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