Green Plains Supply Co. has the following transactions related to notes receivab

Question

Green Plains Supply Co. has the following transactions related to notes receivable during the last 2 months of the year.

Nov. 1 Loaned $60,000 cash to B. Younger on a 1-year, 8% note.
Dec. 11 Sold goods to R. P. Meier, Inc., receiving a $3,600, 90-day, 7% note.
Dec. 16 Received an $12,000, 6-month, 9% note to settle an open account from M. Chen.
Dec. 31 Accrued interest revenue on all notes receivable.

Journalize the transactions for Green Plains Supply Co.

Date Account/Description Debit Credit
Nov. 1





Dec. 11





Dec. 16





Dec. 31

Explanation / Answer

Nov. 1 Note Rxable Dr 60000 Cash Cr 60000 Loaned $60,000 cash to B. Younger on a 1-year, 8% note. Dec. 11 Note Rxable Dr 3600 Sales Cr 3600 Sold goods to R. P. Meier, Inc., receiving a $3,600, 90-day, 7% note. Dec. 16 Note Rxable Dr 12000 Acct Payable Cr 12000 Received an $12,000, 6-month, 9% note to settle an open account from M. Chen. Dec. 31 Interest Accrued Dr 1030 Interest Income Cr 1030 Accrued interest revenue on all notes receivable. Calculation : 1) $60,000 1-year, 8% note = 2m*60000*8%/12 = 800 2) $3,600, 90-day, 7% note = 50d*3600*7%/90 = 140 3) $12,000, 6-month, 9% = 15d*12000*9%/180 = 90 -------------------------------------------------------------- Total Accued Interest $1030

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