Question 8 Record the following transactions for Redeker Co, in the general jour

Question

Question 8 Record the following transactions for Redeker Co, in the general journal. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 2017 May 1 Received a S42.750, 12 months, 12% note in exchange for Mark Chamber's outstanding accounts rece Dec. 31 Accrued interest on the Chamber note. Dec. 31 Closed the interest revenue account. 2018 May 1 Received principal plus interest on the Chamber note. (No interest has been accrued in 2018.) Date Account Titles and Explanation Debit Credit (To record accrued interest on note.) (To close the interest revenue account.)

Explanation / Answer

Solution:

Chamber Note. Dr

Date Account Title Debit Credit May1 Chamber Note Dr. 42,750 To Account receivable/ Mark chamber. A/c. 42,750 Dec 31

Chamber Note. Dr

3,420 To Interest revenue 3,420 (To record accrued interest on note) Dec 31 interest revenue. Dr 3,420 To retained earnings 3,420 (To close the interest revenue Account) 2018 May 1 Cash. Dr. 47,880 To chamber note 46,170 To interest revenue 1,710

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