Question

Assume that Yummy Food Canada, famous for Cheerios, Chex snacks, and Yoplait yogurt, completed the following selected transactions:

2016

Nov. 30 - Sold goods to Srad's Inc., receiving a $32,000 three-month, 5.5% note.

Dec. 31 - Made an adjusting entry to accrue interest on the Srad's note.

2017

Feb. 28 - Collected the Srad's note.

Mar. 1 - Received a 90-day, 7.25%, $6,400 note from Lutton Ltd. on account.

Mar. 1 - Sold the Lutton note to Chelmsford Bank, receiving cash of $6,300

Dec. 16 - Loaned $25,000 cash to BT Thomas Provisions Inc., receiving a 90-day, 8% note.

Dec. 31 - Accrued the interest on the BT Thomas Provisions Inc. note.

Required:

1. Record the transactions in Yummy Food's journal. For interest calculations, use a 365-day year for notes receivable issued partway through a month and use a 12-month year for notes receivable issued on the first or last day of a month. Round interest amounts to the nearest dollar.

2.Show what Yummy Foods will report on its comparative balance sheet at December 31, 2016 and December 31, 2017.

Answer 1

1.

2.