Question

Following are transactions of The Barnett Company:

    2017
Dec. 16 Accepted a $22,000, 60-day, 5% note dated this day in granting Carmel Karuthers a time extension on her past-due account.
Dec. 31 Made an adjusting entry to record the accrued interest on the Karuthers note.
Dec. 31 Closed the Interest income account.

     2018
Feb. 14 Received Karuthers’ payment for the principal and interest on the note dated December 16.
Mar.    2 Accepted an $8,000, 4%, 90-day note dated this day in granting a time extension on the past-due account of ATW Company.

Prepare journal entries to record The Barnett Company’s transactions. (Assume 365 days in a year. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.) Total Points: 6
Date Account Debit Credit
Dec 16


Dec 31


Dec 31



Date Account Debit Credit
Feb 14




Mar 2

Answer 1

Barnett Company
	Journal Entries
Date	Account Title	Dr $	Cr $
Dec 16.2017	Notes Receivable-Carmel K.	22,000
	Accounts Receivable		22,000
	(recording the Notes receivable)
Dec31.2017.	Interest Receivable	45
	Interest Income		45
	( Accruing Interest revenue for 15 days ,considering 365 day year)
Feb 14.2018	Cash	22,181
	Interest Receivable		45
	Interest Income		136
	Notes Receivable-Carmel K.		22,000
	(receipt of interest & Notes receivable )
Mar 2.2018.	Notes Receivable-ATW	8,000
	Accounts Receivable		8,000
	(recording the Notes receivable)