2013 1. May 1 Received a $5,600, 12-month, 8% note in exchange for an outstandin

Question

2013 1. May 1 Received a $5,600, 12-month, 8% note in exchange for an outstanding account receivable from S. Rooney. 2. Dec. 31 Accrued interest revenue on the S. Rooney note. 2014 3. May 1 Received principal plus interest on the S. Rooney note. (No interest has been accrued since December 31, 2013.) 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. Round answers to 0 decimal places, e.g. 5,250.)

Explanation / Answer

Solution.

Date Account Debit ($) Credit ($) 1 May 2013 Notes receivable 5600      Accounts receivable- S. Rooney 5600 31 Dec 2013 Interest receivable 299      Interest income 299 1 May 2014 Cash 6048      Notes receivable 5600 Interest receivable 299      Interest income 149

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.