Record the following transactions for Redeker Co. in the general journal. 2017 M

Question

Record the following transactions for Redeker Co. in the general journal.

2017 May Dec. Dec. 2018 May 1 31 31 Received a $33,000, 12 months, 10% note in exchange for Mark Chamber's outstanding accounts receivable. Accrued interest on the Chamber note. Closed the interest revenue account. 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

Journal entry :

Date accounts & explanation debit credit May 1 Notes receivable 33000 Account receivable 33000 (To record notes receivable) Dec 31 Interest receivable (33000*10%*8/12) 2200 Interest revenue 2200 (To record accured interest) Dec 31 Interest revenue 2200 Income summary 2200 (To close the interest reveneu account) May 1 Cash 36300 Notes receivable 33000 Interest receivable 2200 Interest revenue 1100 (To record receipt)

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