Question

Consider the following transactions for Renschler Communication. LOADING...​(Click the icon to view the​ transactions.) Journalize all transactions for Renschler Communication. Round all amounts to the nearest dollar. ​(For notes stated in​ days, use a 365​-day year. Round your final answers to the nearest whole dollar. Record debits​ first, then credits. Exclude explanations from journal​ entries.)

2018 Dec. 6 Received a $ 60 comma 000​, 90​-day, 9​% note in settlement of an overdue accounts receivable from All Star.

31 Made an adjusting entry to accrue interest on the All Star note.

31 Made a closing entry for interest revenue. 2019

Mar. 6 Collected the maturity value of the All Star note.

Jun. 30 Loaned $ 10 comma 000 cash to Love Joy Music​, receiving a​ six-month, 18​% note.

Oct. 2 Received a $ 2 comma 000​, 60​-day, 18​% note for a sale to So Long Music. Ignore Cost of Goods Sold. Dec. 1 So Long Music dishonored its note at maturity. 1 Wrote off the receivable associated with So Long Music. ​(Use the allowance​ method.)

30 Collected the maturity value of the Love Joy Music note.

Answer 1

Journal entry

Date	account and explanation	Debit	Credit
Dec 6	Notes receivable-All star	60000
	Account receivable		60000
Dec 31	Interest receivable (60000*9%*25/365)	370
	Interest revenue		370
Dec 31	Interest revenue	370
	Income summary		370
Mar 6	Cash	60888
	Notes receivable-All star		60000
	Interest receivable		370
	Interest revenue (60000*9%*35/365)		518
June 30	Notes receivable-Love Joy music	10000
	Cash		10000
Oct 2	Notes receivable-So long music	2000
	Sales revenue		2000
Dec 1	Allowance for doubtful accounts	2059
	Notes receivable-So long music		2000
	Interest revenue (2000*18%*60/365)		59
Dec 31	Cash	10900
	Notes receivable-Love Joy music		10000
	Interest revenue (10000*18%*6/12)		900