WileyPLUS xG Chegg.com Fred -> C D edugen.wileyplus.com/edugen/student/mainfr.un

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WileyPLUS xG Chegg.com Fred -> C D edugen.wileyplus.com/edugen/student/mainfr.un. xf CALCULATOR NTER VERSIONBACK STAN DARD VIEW PRI Problem 8-8A Kolton Com pany closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $26,000. Notes Receivable include the following Face Value Maturity DateInterest Rate 890 1290 696 Maker Date April 21 Both Inc. May 25 June 30 Term $5,600 90 days uy 20 8,400 60 days July 24 Manning Co ANF Corp 12,000 6 months December 31 During July, the following transactions were completed July 5 14 20 24 Made sales of $6,100 on Kolton credit cards Made sales of $700 on Visa credit cards. The credit card service charge is 490 Received payment in full from Booth Inc. on the amount due Received payment in full from Manning Co. on the amount due Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of goods sold entries.) (Credit accoun titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit July 14 4:01 PM 2/28/2016 Ask me anything Desktop

Explanation / Answer

Solution:

(A). Journal Entry for Adjusting Accured Interest Receivables

Kolton Receivables 6,100

Kolton Cards Income 6,100

(A)1. Visa Cards Receivables 728

   Service Income 700

   Service Charge 28

(B). Cash A/c 26,000

   Accounts Receivables A/c 5,600

Accounts Receivables A/c 8,400

   Accounts Receivables A/c 12,000

(C). Cash A/c 26,000

   Notes Receivables 26,000

(D).

   Cash A/c 2,176

   Interest Receivables A/c 448

Interest Receivables A/c 1,008

Interest Receivables A/c 720

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