FULL S Exercise 9-12 Vandiver Company had the following select transactions Apt.
ID: 2335872 • Letter: F
Question
FULL S Exercise 9-12 Vandiver Company had the following select transactions Apt. 1, 2017 Accepted Goodwin Company's 12-month, 10% note in settlement of a tss,000 account receivable. July 1, 2017 Loaned $67,000 cash to Thomas Slocombe on a 9-month, 8% note. Dec. 31, 2017 Accrued interest on all notes receivable. Apr. 1, 2018 Received principal plus interest on the Goodwin note. Apr. 1, 2018 Thomas Slocombe dishonored its note; Vandiver expects it will eventually collect Prepare journal entries to record the transactions. Vandiver prepares adjusting entries once a year on December 31. (Credit account titles are manually. Record journal entries in the order presented in the problem.) automatically indented when amo Date Account Titles and Explanation /1/17 Notes Recelvable Debit Credit Accounts Receivable 12/31/17 (To record interest at 10%.)
Explanation / Answer
Journal entry :
(To record interest at 10%)
Date account and explanation debit credit Apr 1 Notes receivable 65000 Account receivable 65000 (To record notes receivable) July 1 Notes receivable 67000 Cash 67000 (To record loan given) Dec 31 Interest receivable (65000*10%*9/12) 4875 Interest revenue 4875(To record interest at 10%)
Dec 31 Interest receivable (67000*8%*6/12) 2680 Interest revenue 2680 (To record interest at 8%) Apr 1 Cash 71500 Notes receivable 65000 Interest receivable 4875 Interest revenue (65000*10%*3/12) 1625 (TO record principal plus interest on the goodwin notes) Apr 1 Account receivable 71020 Notes receivable 67000 Interest receivable 2680 Interest revenue (67000*8%*3/12) 1340 (To record note dishonoured)Related Questions
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