Question

The following data relate to notes receivable and interest for CGH Cable Co., a cable manufacturer and supplier. (All notes are dated as of the day they are received.)

Apr. 10.	Received a $156,000, 4%, 60-day note on account.
May 15.	Received a $266,700, 8%, 120-day note on account.
June 9.	Received $157,040 on note of April 10.
Aug. 22.	Received a $145,200, 5%, 45-day note on account.
Sept. 12.	Received $273,812 on note of May 15.
30.	Received a $184,200, 9%, 60-day note on account.
Oct. 6.	Received $146,108 on note of August 22.
18.	Received a 115,800, 5%, 60-day note on account.
Nov. 29.	Received $186,963 on note of September 30.
Dec. 17.	Received $116,765 on note of October 18.

Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest.

Answer 1

Journal entry :

Date	account and explanation	debit	credit
Apr 10	Notes receivable	156000
	Account receivable		156000
May 15	Notes receivable	266700
	Account receivable		266700
June 9	Cash	157040
	Notes receivable		156000
	Interest receivable		1040
Aug 22	Notes receivable	145200
	Account receivable		145000
Sep 12	Cash	273812
	Notes receivable		266700
	Interest receivable		7112
Sep 30	Notes receivable	184200
	Account receivable		184200
Oct 6	Cash	146108
	Notes receivable		145200
	Interest receivable		908
Oct 18	Notes receivable	115800
	Account receivable		115800
Nov 29	Cash	186963
	Notes receivable		184200
	Interest receivable		2763
Dec 17	Cash	116765
	Notes receivable		115800
	Interest receivable		965