EBK HORNGREN'S ACCOUNTING
12th Edition
ISBN: 8220103677684
Author: Matsumura
Publisher: YUZU
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Chapter 9, Problem E9.25E
Journalizing note receivable transactions
| Learning Objective 4 Oct. 31 Cash DR $18,355 |
Professional Steam Cleaning performs services on account. When a customer account becomes four months old, Professional converts the account to a note receivable. During 201 8, the company completed the following transactions
| Apr. 28 Sep. 1 Oct. 31 |
Performed service on account for Parkview Club, $18,000. Received an $18,000. 60-day. 12% note from Parkview Club in satisfaction of its past-due Collected the Parkview Club note at maturity. |
Record the transactions in Professional’s journal Round to the nearest dollar.
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Learning Objective 6: Apply GAAP for notes receivable) Markley Foodscompleted the following selected transactions.2018Oct 31 Sold goods to Basic Foods, receiving a $30,000, three-month, 5.25% note. (Youdo not need to make the cost of goods sold journal entry for this transaction.)Dec 31 Made an adjusting entry to accrue interest on the Basic Foods note.2019Jan 31 Collected the Basic Foods note.Nov 11 Loaned $15,800 cash to Straord Shops, receiving a 90-day, 10.0% note.Dec 31 Accrued the interest on the Straord Shops note.Requirements1. Record the transactions in Markley Foods’ journal. Assume that no sales returns areexpected. Round all amounts to the nearest dollar. Explanations are not required.2. Show what Markley Foods will report on its comparative classified balance sheet atDecember 31, 2019, and December 31, 2018, for Notes Receivable and Interest Receivable.
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Chapter 9 Solutions
EBK HORNGREN'S ACCOUNTING
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