E8-11 Recording Note Receivable Transactions, Including Accrual Adjustment for I
ID: 2550263 • Letter: E
Question
E8-11 Recording Note Receivable Transactions, Including Accrual Adjustment for Interest [LO 8-3] The following transactions took place for Parker's Grocery. a. Jan. 1 Loaned $51,000 to a cashier of the company and received back a one-year, 10 percent note. b. June 30 Accrued interest on the note. c. Dec. 31 Received interest on the note. (No interest has been recorded since June 30.) d. Dec. 31 Received principal on the note. Required: Prepare the journal entries that Parker's Grocery would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list I entry worksheet Record the receipt of a note on January 1 for a $51,000 loan to an employee. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journalExplanation / Answer
PARKER'S GROCERY
* Interest for half year on note
51000 x 10/100 x 1/2 = $2550
Date Accounts Debit Credit Receipt of Note Jan 1 Note Receivable 51000 Cash 51000 (Loan to employee against note receivable from him @10%) Accrued Interest on june 30 for Half Year June 30 Interest Receivable 2550 Interest Revenue A/c 2550 (Half year accrued interest accounted) Receipt of interest on Dec 31 Dec 31 Interest Receivable 2550 Interest Revenue A/c 2550 (Interest revenue charged for later half year in books) Dec 31 Cash A/c 5100 Interest Receivable 5100 (Interest received for full year on Dec 31) Receipt of full principal Dec 31 Cash A/c 51000 Note Receivable 51000 (full principal amount received and note matured)Related Questions
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