Problem

Analyzing and journalizing notes receivable transactions LO2 LO3 LO4 The following se...

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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Solutions For Problems in Chapter 16