Entries for Notes Receivable, Including Year-End EntriesThe following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing:20Y7 Dec. 7.Received from Unitarian Clothing and Bags Co., on account, a $72,000, 60-day, 10% note dated December 7.Dec. 31.Recorded an adjusting entry for accrued interest on the note of December 7.Dec. 31.Recorded the closing entry for interest revenue.20Y8 Feb. 5.Received payment of note and interest from Unitarian Clothing & Bags Co.Journalize the entries to record the transactions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank. Assume February has 28 days in 2018If required, round the interest to the nearest cent.

Interest accrued on Dec. 31, 20Y7 = Face value of Notes x rate of interest x No. of days / 360 days…

Answered: The following selected transactions…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries

Section21.1: Accruals

Problem 1OYO

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Entries for Notes Receivable, Including Year-End Entries

The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing:

20Y7
Dec. 7.	Received from Unitarian Clothing and Bags Co., on account, a $72,000, 60-day, 10% note dated December 7.
Dec. 31.	Recorded an adjusting entry for accrued interest on the note of December 7.
Dec. 31.	Recorded the closing entry for interest revenue.
20Y8
Feb. 5.	Received payment of note and interest from Unitarian Clothing & Bags Co.

Journalize the entries to record the transactions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank. Assume February has 28 days in 2018

If required, round the interest to the nearest cent.

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