These transactions took place for Marigold Corp. 2016 May 1 Received a $3,200, 1

Question

These transactions took place for Marigold Corp. 2016 May 1 Received a $3,200, 12-month, 6% note in exchange for an outstanding account receivable from R. Stoney. Dec. 31 Accrued interest revenue on the R. Stoney note 2017 May 1 Received principal plus interest on the R. Stoney note. (No interest has been accrued since December 31, 2016.) 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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit May 1, 2016 Notes receivable 3200     Account receivable 3200 Dec 31,2016 Interest receivable 128     Interest revenue (3200*6%*8/12) 128 May 1,2017 Cash 3392     Notes receivable 3200     Interest receivable 128     Interest revenue (3200*6%*4/12) 64

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