BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

NOTES RECEIVABLE ENTRIES J. K. Pratt Co. had the following transactions: 20-1

images

images

REQUIRED

Record the transactions in a general journal.

To determine

Prepare journal entry to record the transactions of Company J.K. P.

Explanation

Note receivable:

Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or, borrower to the lender or creditor. Notes receivable is an asset of a business.

Prepare journal entry to record received payment for sale of merchandise.

DateAccount titles and ExplanationDebitCredit
July 20Notes receivable$750
     Sales$750
(To record received note for merchandise sale)
August 19Cash$753.13
     Notes receivable$750
      Interest revenue (1)$3.13
(Record received payment of note with interest)
August 25Accounts receivable - L.B$1,100
     Sales$1,100
(To record sale made on account)
September 5Cash$100
Notes receivable$1,000
     Accounts receivable - L.B$1,100
(To record casj received and note to settle account)
October 5Cash$1,005
     Notes receivable$1,000
     Interest revenue (2)$5
(Record received payment of note with interest)
October 10Cash$50
     Notes receivable$700
      Interest revenue$750
(Record received payment of note with interest)
November 9Cash$203.50
Notes receivable (new note)$500
     Notes receivable (old note)$700
      Interest revenue (3)$3.50
(To record received new note plus interest on lod note)
December 9Cash$502.50
     Notes receivable$500
      Interest revenue (4)       $2.50
(Record received payment of note with interest)
December 10Accounts receivable - B. K$1,500
     Sales$1,500
(To record sale made on account)
December 15Cash$150
     Notes receivable$1,350
     Accounts receivable - B.K$1,500
(To record cash received and note to settle account)
January 14Accounts receivable B.K$1,357.88
     Notes receivable$1,350
      Interest revenue (5)$7.88
(To record note receivable dishonoured)
February 13Cash$1,365.80
     Accounts receivable B.K$1,357.88
      Interest revenue (6)$7.92
(To record cash collected dishonoured with interest)

Table (1)

Working notes:

(1)Calculate interest revenue...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Describe this textbooks three themes.

Accounting Information Systems

How does a period cost differ from a product cost?

Managerial Accounting: The Cornerstone of Business Decision-Making

DuPONT ANALYSIS Doublewide Dealers has an ROA of 10%, a 2% profit margin, and an ROE of 15%. What is its total ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)