Exercise 9-10 (Part Level Submission) Elburn Supply Co. has the following transa

Question

Exercise 9-10 (Part Level Submission)

Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2017. The company does not make entries to accrue interest except at December 31.

Journalize the transactions for Elburn Supply Co.

Nov. 1 Loaned $17,250 cash to Manny Lopez on a 12-month, 8% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $30,000, 90-day, 6% note. 16 Received a $20,160, 180 day, 10% note in exchange for Joe Fernetti’s outstanding accounts receivable. 31 Accrued interest revenue on all notes receivable. ? (a) Journalize the transactions for Elburn Supply Co. (Credit account titles are automatically indente Date Account Titles and Explanation Debit Credit LINK TO TEXT

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Nov 1 Notes receivable-Manny Lopez 17250 Cash 17250 (To record loan) Dec 11 Notes receivable- Ralph Kremer, Inc. 30000 Sales revenue 30000 (To record Sales) Dec 16 Notes receivable-Joe Fernetti’s 20160 Account receivable 20160 (To record notes receivable) Dec 31 Interest receivable 414 Interest revenue 414 (To record accured interest)

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