These transactions took place for Nash\'s Trading Post, LLC 2016 May 1 Received

Question

These transactions took place for Nash's Trading Post, LLC 2016 May 1 Received a $7,400, 12-month, 690 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. 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 account titles and explanation debit credit May 1,2016 Notes receivable 7400 Account receivable 7400 Dec 31,2016 Interest receivable (7400*6%*8/12) 296 Interest revenue 296 May 1,2017 Cash 7844   Notes receivable 7400   Interest receivable 296 Interest revenue (7400*6%*4/12) 148

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