Exercise 8-12 Vandiver Company had the following select transactions. Apr. 1, 20

Question

Exercise 8-12 Vandiver Company had the following select transactions. Apr. 1, 2014 July 1, 2014 Dec. 31, 2014 Apr. 1, 2015 Apr. 1, 2015 Accepted Goodwin Company's 12-month, 10% note in settlement of a S95.000 account receivable. Loaned $97,000 cash to Thomas Slocombe on a 9-month, 8% note. Accrued interest on all notes receivable. Received principal plus interest on the Goodwin note. Thomas Slocombe dishonored its note; Vandiver expects it will eventually collect. Prepare journal entries to record the transactions. Vandiver prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

Date Particulars Dr. Amount Cr Amount 04/01/15 Goodwin Company 12 month note recievable A/c Dr. 95000 To Accounts Recievable A/c 95000 (Being Note recieved in against of accounts recievable) 07/01/2015 Note recievable A/c Dr. 97000 To Cash 97000 (Beieng loan made to thomas) 12/31/15 Accrued Interest A/c Dr. 7125 To Interest Income on Note recievable 7125 (being i10% interest recorded) Accrued Interest A/c dr. 3880 To Interest Income on 8% Note recievable 3880 (Being Interest of 8% recorded) 04/01/2015 Cash A/c Dr. 95000 To Goodwin company 12 month note recievable a/c dr. 95000 Cash A/c Dr. 9500 To Accrued Interest 7125 To Interest Income 2575 (Being Interest Income recorded) Loan to Thomas A/c Dr. 95000 To Note Recievable A/c 95000 (Being Dishonoured)

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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