E8-10. Prepare entries for notes receivable transactions. Moses Supply Co. has t
ID: 2511335 • Letter: E
Question
E8-10. Prepare entries for notes receivable transactions. Moses Supply Co. has the following transactions related to notes receivable during the last 2 mont the year. The company does not make entries to accrue interest except at D ecember 31. Nov. 1 Dec. 11 16 Loaned $60,000 cash to C. Bohr on a 12-month, 7% note. Sold goods to K. R. Pine, Inc, receiving a $3,600, 90-day, 896 note. Received a $12,000, 180-day, 9% note to settle an open account from A. Murdock. 31 Acrued interest rvable Instructions Journalize the transactions for Moses Supply Co. (Omit cost of goods sold entries) E8-11. Journalize notes receivable transactions. These transactions took place for Bramson Co. 2016 Received a $5,000, 12-month, 6% note in exchange for an outstanding account receivable from R. Stoney. May 1 Dec. Accrued interest revenue on the R. Stoney note. 31 2017 Received principal plus interest on the R. Stoney note. (No interest has been accrued since December 31, 2016) May 1 Instructions Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31Explanation / Answer
Solution E8-10:
Solution E8-11:
Journal Entries - Moses Supply Co Date Particulars Debit Credit 1-Nov Notes receivable Dr $60,000.00 To Cash $60,000.00 (Being loan given to C. Bohr at 7% interest) 11-Dec Notes receivable Dr $3,600.00 To Sales Revenue $3,600.00 (Being goods sold to K. R. Pine Inc and 8% note received) 16-Dec Notes receivable Dr $12,000.00 To Accounts receivables $12,000.00 (Being 9% note received from A. Murdock in settlement of account ) 31-Dec Interest Receivables Dr $761.00 To Interest Revenue $761.00 ($60,000*7%*2/12 = $700$3,600*8%*20/30*1/12 = $16
$12,000*9%*15/30*1/12 = $45)
Being interest accured on notes)
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