Prepare general journal entries for the following transactions:

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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JOURNAL ENTRIES (NOTE RECEIVED, DISCOUNTED, DISHONORED, AND
COLLECTED) Prepare general journal entries for the following transactions:

Aug. 4 Reccived a 120-day, 7% note in payment for accounts receivable balance
of $4,000.
14 Discounted the note at a rate of 8%.
Sept. 5 Received a 30-day, 6% note in payment for accounts receivable balance
of $1,200.
Oct. 5 The $1,200, 30-day, 6% note is dishonored.
Nov. 4 The dishonored note is paid, plus interest at 6% on the maturity value.
Transcribed Image Text:Aug. 4 Reccived a 120-day, 7% note in payment for accounts receivable balance of $4,000. 14 Discounted the note at a rate of 8%. Sept. 5 Received a 30-day, 6% note in payment for accounts receivable balance of $1,200. Oct. 5 The $1,200, 30-day, 6% note is dishonored. Nov. 4 The dishonored note is paid, plus interest at 6% on the maturity value.
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