eBook Print Item GENERAL JOURNAL POST. REF CCOUNT TITLE Adjusting Entries 100.00
ID: 2333762 • Letter: E
Question
eBook Print Item GENERAL JOURNAL POST. REF CCOUNT TITLE Adjusting Entries 100.00 Dec. 31 Interest Expense 100.00 Interest Payable 42.00 31 Interest Recelvable 42.00 Interest Income Required 1. Assuming that Thomas uses reversing entries, prepare journal entries to recod a the January 1, 2017, reversing entries b the March 1, 2017, $4,326 collection of the note recervable c the May 1, 2017, $6,300 payment of ine note payabie 2. Assuming instead nat Thomas does not use reversing entries, prepare journal entnies to recora tne coilection of he note recervable and the payment of the note payableExplanation / Answer
1.
Requirement
Date
Account Title
Debit
Credit
1a.
Jan. 1, 2017
Interest payable
$ 100.00
Interest expense
$ 100.00
Jan. 1, 2017
Interest income
$ 42.00
Interest receivable
$ 42.00
1b.
March 1, 2017
Cash
$ 4,381.00
Interest income ($42*12/9)
$ 56.00
Notes receivable
$ 4,325.00
1c.
May. 1, 2017
Notes payable
$ 6,300.00
Interest expense ($100*12/9)
$ 133.33
Cash
$ 6,433.33
2.
Requirement
Date
Account Title
Debit
Credit
2
March 1, 2017
Cash
$ 4,339.00
Interest income ($42*3/9)
$ 14.00
Interest receivable
$ 42.00
Notes receivable
$ 4,325.00
May. 1, 2017
Notes payable
$ 6,300.00
Interest payable
$ 100.00
Interest expense ($100*3/9)
$ 33.33
Cash
$ 6,333.33
Requirement
Date
Account Title
Debit
Credit
1a.
Jan. 1, 2017
Interest payable
$ 100.00
Interest expense
$ 100.00
Jan. 1, 2017
Interest income
$ 42.00
Interest receivable
$ 42.00
1b.
March 1, 2017
Cash
$ 4,381.00
Interest income ($42*12/9)
$ 56.00
Notes receivable
$ 4,325.00
1c.
May. 1, 2017
Notes payable
$ 6,300.00
Interest expense ($100*12/9)
$ 133.33
Cash
$ 6,433.33
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