part b
Entries for Notes Receivable, Including Year-End Entries
The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing:
20Y7 | |
Dec. 7. | Received from Unitarian Clothing and Bags Co., on account, a $60,000, 60-day, 6% note dated December 7. |
Dec. 31. | Recorded an adjusting entry for accrued interest on the note of December 7. |
Dec. 31. | Recorded the closing entry for interest revenue. |
20Y8 | |
Feb. 5. | Received payment of note and interest from Unitarian Clothing & Bags Co. |
Journalize the entries to record the transactions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank. Assume February has 28 days in 2018
If required, round the interest to the nearest cent.
20Y7, Dec. 7 | Notes Receivable | fill in the blank 2 | fill in the blank 3 |
Accounts Receivable-Unitarian Clothing and Bags Co. | fill in the blank 5 | fill in the blank 6 | |
Dec. 31 | Interest Receivable | fill in the blank 8 | fill in the blank 9 |
Interest Revenue | fill in the blank 11 | fill in the blank 12 | |
Dec. 31 | Interest Revenue | fill in the blank 14 | fill in the blank 15 |
Retained Earnings | fill in the blank 17 | fill in the blank 18 | |
20Y8, Feb. 5 | Cash | fill in the blank 20 | fill in the blank 21 |
Notes Receivable | fill in the blank 23 | fill in the blank 24 | |
Interest Receivable | fill in the blank 26 | fill in the blank 27 | |
Interest Revenue | fill in the blank 29 | fill in the blank 30 |
Accounts title |
Debit |
Credit |
|
20Y7, Dec. 7 |
Notes Receivable |
$60,000 |
$0 |
Accounts Receivable-Unitarian Clothing and Bags Co. |
$0 |
$60,000 |
|
Dec. 31 |
Interest Receivable [($60000 x 6% x 24days/360)] |
$240 |
$0 |
Interest Revenue |
$0 |
$240 |
|
Dec. 31 |
Interest Revenue |
$240 |
$0 |
Retained Earnings |
$0 |
$240 |
|
20Y8, Feb. 5 |
Cash |
$60,600 |
$0 |
Notes Receivable |
$0 |
$60,000 |
|
Interest Receivable |
$0 |
$240 |
|
Interest Revenue ($60000 x 6% x 36 days/360) |
$0 |
$360 |
Get Answers For Free
Most questions answered within 1 hours.