Analyzing and journalizing notes receivable transactions LO2 LO3 LO4
The following selected transactions are from Springer Company.
2010
Nov. 1 Accepted a $4,800, 90-day, 8% note dated this day in granting Steve Julian a time extension
on his past-due account receivable.
Dec. 31 Made an adjusting entry to record the accrued interest on the Julian note.
Check Jan. 30, Cr. Interest
Revenue $32
2011
Jan. 30 Received Julian’s payment for principal and interest on the note dated November 1.
Feb. 28 Accepted a $12,600, 8%, 30-day note dated this day in granting a time extension on the pastdue
account receivable from King Co.
Mar. 1 Accepted a $6,200, 60-day, 12% note dated this day in granting Myron Shelley a time extension
on his past-due account receivable.
30 The King Co. dishonored its note when presented for payment.
April 30 Received payment of principal plus interest from M. Shelley for the March 1 note.
Nov. 30 Wrote off King Co.’s account against Allowance for Doubtful Accounts.
April 30, Cr. Interest
Revenue $124
Required
Prepare journal entries to record these transactions and events. (Round amounts to the nearest dollar.)
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