The following selected transactions were completed by Fasteners Inc. Co., a supp

Question

The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing 20Y3 Nov. 21 Received from McKenna Outerwear Co., on account, a $96,000, 60-day, 7% note dated November 21 in settlement of a past due account. Recorded an adjusting entry for accrued interest on the note of November 21 Dec. 20Y4 Jan. 31 20 Received payment of note and interest from McKenna Outer Wear Co. Journalize the entries to record the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360- day year when calculating interest. Round answers to the nearest dollar amount.

Explanation / Answer

Date Description Post ref. Debit Credit Assets Liabilities Equity 21-Nov 96000 + Accounts Receivable-Mckenna Outer Wear Co. 96000 - 31-Dec Interest receivable 747 + Interest revenue 747 + 20-Jan Cash 97120 + Interest receivable 747 + Interest revenue 373 + Notes receivable 96000 -

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