These transactions took place for Windsor, Inc. 2016 May 1 Received a $5,500, 12

Question

These transactions took place for Windsor, Inc. 2016 May 1 Received a $5,500, 12-month, 3% note in exchange for an outstanding account receivable from R. Stoney. Dec. 31 Accrued interest revenue on the R. Stoney note. 2017 May 1 Received principal plus interest on the R. Stoney note. (No interest has been accrued since December 31, 2016.) Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.(Credit account 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

Explanation / Answer

Debit Credit 1-May Notes Receivable 5500        Accounts Receivable—R. Stoney 5500 31-Dec Interest Receivable 110 =5500*3%/12*8        Interest Revenue 110 1-May Cash 5665      Notes Receivable 5500      Interest Receivable 110       Interest Revenue 55 =5500*3%/12*4

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