Make all of the necessary journal entries for the following (7, 8, and 9) independent transactions:
7. The company pledged its $10,000 notes receivables to a bank and received a loan of $8,500. The note is not paid on the maturity. (Protest fee $6)
8. The company discounted its notes receivables for $5,000 and collected $4,400. This note is paid on maturity.
9. The company gave its $60,000 note receivable to a bank for collection. The note is not paid on maturity. Bank protested the note on behalf of the company and credited nottery public fee from company’s account for $8.
No. | General Journal | Debit | Credit |
7 | Cash | 8,500 | |
Note Payable | 8,500 | ||
Footnote to the financial statements, indicating that $10,000 of note receivable | |||
have been pledged. | |||
8 | Cash | 4,400 | |
Finance Charge | 600 | ||
Note Receivable | 5,000 | ||
9 | Miscellaneous expense | 8 | |
Cash | 8 | ||
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