Journal Entries (Note Received, Renewed, and Collected)Jan.Received a 30-day, 6% note in payment for merchandise sale of $20,000.16Feb. Received $100 (interest) on the old (January 16) note; the old note is renewed for 3015days at 7%.Mar.Received principal and interest on the new (February 15) note.1719 Received a 60-day, 6% note in payment for accounts receivable balance of $8,000.May Received $80 (interest) plus $1,000 principal on the old (March 19) note; the old note18 renewed for 60 days (from May 18) at 6%.JulyReceived principal and interest on the new (May 18) note.17Prepare general journal entries for the transactions. Assume 360 days in a year.Page: 1ACCOUNT TITLE DOC. POST.NO. REF.DATEDEBIT CREDIT20--1Jan. 1634Feb. 1546789Mar. 17910101111121213 Mar. 19131414151516 May 1816171718181919202021 July 1721222223232424in Calculating InterestIsing 360 days as the denominator, calculate interest for the following notes using theprmula I = P x R x T. Round your answers to the nearest cent.Principal RateTimeInterest$4,1006.00%30 days1,0007.50603,5008.001209506.80951,2507.251022,6007.0090

Notes receivable are a balance sheet item that represent the face value of promissory notes. A…

kenewed, Jan. Received a 30-day, 6% note in payment for merchandise sale of $ reb. Received $100 (interest) on the old (January 16) note; the old not 15 days at 7%. Mar. Received principal and interest on the new (February 15) note. 17 19 Received a 60-day, 6% note in payment for accounts receivable ba May Received $80 (interest) plus $1,000 principal on the old (March 19 18 renewed for 60 days (from May 18) at 6%.

kenewed, Jan. Received a 30-day, 6% note in payment for merchandise sale of $ reb. Received $100 (interest) on the old (January 16) note; the old not 15 days at 7%. Mar. Received principal and interest on the new (February 15) note. 17 19 Received a 60-day, 6% note in payment for accounts receivable ba May Received $80 (interest) plus $1,000 principal on the old (March 19 18 renewed for 60 days (from May 18) at 6%.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 2CE

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On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of 43,830, beginning on December 31, 20Y2. Journalize the entries to record the following:
JOURNAL ENTRIES (NOTE ISSUED FOR BANK LOAN) Prepare general journal entries for the following transactions: Sept. 15 Borrowed 7,000 cash from the bank, giving a 60-day non- interest- bearing note. The note is discounted 8 % by the bank. Nov. 14 Paid the 7,000 note, recognizing the discount as interest expense.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Notes Receivable Transactions The following notes receivable transactions occurred for Harris Company during the last three months of the current year. (Assume all notes are dated the day the transaction occurred.) Required: 1. Prepare the journal entries to record the preceding note transactions and the necessary adjusting entries on December 31. (Assume that Harris does not normally sell its notes and uses a 360-day year for the purpose of computing interest. Round all calculations to the nearest penny.) 2. Show how Harris notes receivable would be disclosed on the December 31 balance sheet. (Assume these are the only note transactions encountered by Harris during the year.)