11. The following transactions occurred during 2018 for Misty Movers. The compan
ID: 2430870 • Letter: 1
Question
11. The following transactions occurred during 2018 for Misty Movers. The company ends its accounting year on December 31. May 15 Performed services on account for Derek’s Rentals, $12,500 Aug. 1 Received $500 cash and a $12,000, 3-month, 9% note from Derek’s Rentals in satisfaction of its past-due account receivable Nov. 1 Collected the Derek’s Rentals note at maturity Prepare the journal entries to record Misty Movers’ transactions. Include descriptions. Date Accounts and Explanation Debit Credit
Explanation / Answer
Journal entry :
Date account and explanation debit credit May 15 Account receivable 12500 Service revenue 12500 (To record performed service) Aug 1 Cash 500 Notes receivable 12000 Account receivable 12500 (To record cash and notes receivable) Nov 1 Cash (12000*9%*3/12)+12000 12270 Notes receivable 12000 Interest revenue 270 (To record amount received)Related Questions
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