Samberg Inc. had the following transactions. a. Oct. 1 – Sold $20,000 of merchan

Question

Samberg Inc. had the following transactions.

a. Oct. 1 – Sold $20,000 of merchandise on account, 2/10, n/30 to McCormick Industries.

b. Nov. 1 – Received a $20,000, 90-day, 9% note from McCormick Industries to settle its $20,000 unpaid balance.

c. Dec. 31 – Accrued interest on the note.

d. Jan. 31 – Received the interest on the note’s maturity date.

e. Jan. 31 – Received the principal on the note’s maturity date. Required: Prepare the required journal entries. (Round your answer to the nearest whole dollar amount. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

below are the numerical areas needing completed in the journal entries

No Date General Journal Debit Credit 1 Oct 01 Accounts Payable 20,000 Sales Revenue 20,000 2 Nov 01 Notes Receivable 20,000 Accounts Receivable 20,000 3 Dec 31 Interest Receivable Interest Revenue 4 Jan 31 Cash Interest Receivable Interest Revenue 5 Jan 31 Cash 20,000 Notes Receivable 20,000

Explanation / Answer

Oct-01 Accounts receivable $ 20,000 Sales revenue $ 20,000 Nov-01 Note receivable $ 20,000 Accounts receivable $ 20,000 Dec-31 Interest receivable (20,000*9%*2/12) $        300 Interest revenue $        300 Jan-31 Cash $        450 Interest receivable $        300 Interest revenue ($20,000*9%*1/12) $        150 Jan-31 Cash $ 20,000 Note receivable $ 20,000

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