Question

Larkspur Company had the following select transactions.

Apr.	1, 2022		Accepted Goodwin Company’s 12-month, 6% note in settlement of a $43,000 account receivable.
July	1, 2022		Loaned $23,000 cash to Thomas Slocombe on a 9-month, 12% note.
Dec.	31, 2022		Accrued interest on all notes receivable.
Apr.	1, 2023		Received principal plus interest on the Goodwin note.
Apr.	1, 2023		Thomas Slocombe dishonored its note; Larkspur expects it will eventually collect.

Prepare journal entries to record the transactions. Larkspur prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
4/1/227/1/2212/31/224/1/23
4/1/227/1/2212/31/224/1/23
4/1/227/1/2212/31/224/1/23
	(To record interest accrued on Goodwin note)
4/1/227/1/2212/31/224/1/23
	(To record interest accrued on Thomas note)
4/1/227/1/2212/31/224/1/23
	(To record collection of Goodwin note and interest)
4/1/227/1/2212/31/224/1/23
	(To record the dishonor of Thomas note)

Answer 1