Samber g Inc had the following transactions Oct 1 - Sold $24,600 of merchandise

Question

Samber g Inc had the following transactions Oct 1 - Sold $24,600 of merchandise on account 2/10. n/30 to McCormick Industries Nov 1 - Received a S24.500. 90-day. 9% note from McCormick Industries to settle its $24,500 unpaid balance Dec 31 - Accrued interest on the note . Jan 31 - Received the interest on the note's maturity date . Jan 31 - Received the principal on the note's maturity date Prepare the required journal entries (Round your answer to the nearest whole dollar amount. II no entry is required for a transaction/event, select No Journal Entry Required" in the first account field.)

Explanation / Answer

Journal entries

Working

Interest upto 31sr december = 24500 x 2/12 = 4083

Interest from 1st jan to 31st jan = 24500 x 1/12 = 2042

Date General journal Debit Credit Oct 1 McCormick industries $24500 Sales revenue 24500 1 Nov 9% Notes $24500 McCormick Industries 24500 31 Decmber Interest accrued 4083 Interest Income 4083 31 Jan Bank 6125 Accrued Interes 4083 Interest income 2042 31 Jan Bank 24500 9% note 24500

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