Nash Family Importers sold goods to Tung Decorators for $37,200
on November 1, 2020, accepting Tung’s $37,200, 6-month, 6%
note.
Prepare Nash’s November 1 entry, December 31 annual adjusting
entry, and May 1 entry for the collection of the note and interest.
(If no entry is required, select "No Entry" for the
account titles and enter 0 for the amounts. 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 |
---|---|---|---|
choose a transaction date 11/1/2012/31/205/1/21 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
|
choose a transaction date 11/1/2012/31/205/1/21 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
|
choose a transaction date 11/1/2012/31/205/1/21 |
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
|
enter an account title |
enter a debit amount |
enter a credit amount |
|
enter an account title |
enter a debit amount |
Solution:
Journal Entries - Nash Family Importers | |||
Date | Particulars | Debit | Credit |
1-Nov | Notes receivables Dr | $37,200.00 | |
To Sales revenue | $37,200.00 | ||
(To record sales on receipt of note) | |||
31-Dec | Interest receivables Dr ($37,200*6%*2/12) | $372.00 | |
To Interest Revenue | $372.00 | ||
(To record interest revenue) | |||
1-May-20 | Cash Dr | $38,316.00 | |
To Note receivables | $37,200.00 | ||
To Interest receivables | $372.00 | ||
To Interest Revenue ($37,200*6%*4/12) | $744.00 | ||
(To record collection of note at maturity) |
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