FINANCIAL ACCT.:...(LL)-W/PKG >CUSTOM<
8th Edition
ISBN: 9781119378327
Author: Kimmel
Publisher: WILEY C
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Chapter 8, Problem 8.11E
To determine
Accounts receivable:
Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.
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 lender or creditor. Notes receivable is an asset of a business.
To journalize: The transactions of Company B.
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These transactions took place for Swifty Corporation
2016
May 1
Received a $ 3,300, 12-month, 6% note in exchange for an outstanding account receivable from R. Stoney.
Dec. 31
Accrued interest revenue on the R. Stoney note.
2017
May 1
Received principal plus interest on the R. Stoney note. (No interest has been accrued since December 31, 2016.)
Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
These transactions took place for Coronado Industries
2016
May 1
Received a $2,800, 12-month, 3% note in exchange for an outstanding account receivable from R. Stoney.
Dec. 31
Accrued interest revenue on the R. Stoney note.
2017
May 1
Received principal plus interest on the R. Stoney note. (No interest has been accrued since December 31, 2016.)
Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.(Credit
account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in
the problem.)
Date
Account Titles and Explanation
Debit
Credit
These transactions took place for Covington Corporation which has a December 31 fiscal year end. Covington does not maintain a separate Allowance for Doubtful Notes Receivable account.
2017
May 1
Received a $4,800, 1-year, 8% note in exchange for an outstanding account receivable from S. Dolan. Interest is due at the maturity of the note.
Nov. 1
Loaned $61,200 cash to B. Younger on a 4 month, 9% note. Interest is due at the end of each month.
Nov. 30
Received the interest due from B. Younger.
Dec. 31
Received the interest due from B. Younger.
Dec. 31
Accrued interest revenue on notes receivable.
2018
Jan. 31
Received the interest due from B. Younger. Younger also repaid 75% of the principal balance owing on the note at this time.
Feb. 28
Wrote off the balance of the B. Younger note as Younger has defaulted. Future payments are not expected. The interest due for the month of February was not collected.
May 1
Received principal plus interest…
Chapter 8 Solutions
FINANCIAL ACCT.:...(LL)-W/PKG >CUSTOM<
Ch. 8 - What is the difference between an account...Ch. 8 - What are some common types of receivables other...Ch. 8 - What are the essential features of the allowance...Ch. 8 - Prob. 4QCh. 8 - Prob. 5QCh. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Tawnya Dobbs, the vice president of sales for...Ch. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - Prob. 11QCh. 8 - Prob. 12QCh. 8 - How may the maturity date of a promissory note be...Ch. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - General Motors Company has accounts receivable and...Ch. 8 - Prob. 17QCh. 8 - Prob. 18QCh. 8 - Prob. 19QCh. 8 - Prob. 20QCh. 8 - Prob. 21QCh. 8 - Prob. 22QCh. 8 - Prob. 23QCh. 8 - Prob. 24QCh. 8 - Presented below are three receivables...Ch. 8 - Prob. 8.2BECh. 8 - Prob. 8.3BECh. 8 - Prob. 8.4BECh. 8 - Byrd Co. uses the percentage-of-receivables basis...Ch. 8 - Prob. 8.6BECh. 8 - Compute interest and find the maturity date for...Ch. 8 - Prob. 8.8BECh. 8 - Prob. 8.9BECh. 8 - Prob. 8.10BECh. 8 - Prob. 8.11BECh. 8 - Prob. 8.12BECh. 8 - Prob. 8.1DIECh. 8 - Prob. 8.2ADIECh. 8 - Prob. 8.2BDIECh. 8 - Prob. 8.3DIECh. 8 - Prob. 8.4DIECh. 8 - Prob. 8.1ECh. 8 - Prob. 8.2ECh. 8 - Prob. 8.3ECh. 8 - Prob. 8.4ECh. 8 - Prob. 8.5ECh. 8 - Prob. 8.6ECh. 8 - Prob. 8.7ECh. 8 - Prob. 8.8ECh. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Prob. 8.11ECh. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - Prob. 8.17ECh. 8 - Prob. 8.1APCh. 8 - Prob. 8.2APCh. 8 - Prob. 8.3APCh. 8 - Prob. 8.4APCh. 8 - Prob. 8.5APCh. 8 - Prob. 8.6APCh. 8 - Prob. 8.7APCh. 8 - Prob. 8.8APCh. 8 - Prob. 8.9APCh. 8 - Prob. 8.1CACRCh. 8 - Prob. 8.1EYCTCh. 8 - Prob. 8.2EYCTCh. 8 - Prob. 8.3EYCTCh. 8 - Prob. 8.4EYCTCh. 8 - Prob. 8.7EYCTCh. 8 - Prob. 8.8EYCTCh. 8 - Prob. 8.9EYCTCh. 8 - Prob. 8.1IFRS
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Accounts Receivable and Accounts Payable; Author: The Finance Storyteller;https://www.youtube.com/watch?v=x_aUWbQa878;License: Standard Youtube License