(ACCT 2100 & 2110O Elburn Supply Co. has the entries to accrue interest except a

Question

(ACCT 2100 & 2110O Elburn Supply Co. has the entries to accrue interest except at December 31 Dec. 11 16 31 Sold goods to Ralph Kremer, Inc., receiving a $74,250, 90-day, 8% note. Received a $95,400, 180 day, 8% note in exchange for Joe Fernetti's outstanding accounts receivable Accrued interest revenue on all notes receivable. Credit account bitles are automatically indented when ou indent manually. Use 360 days for calculation. Round answers to 0 decimal places, e.g.5,275. Record journal entries in the order presented in the problemJ Cash 74,250 74,250 95,400

Explanation / Answer

31-Dec Interest receivable 1098       Interest revenue 1098 1-Nov Cash 29700       Interest receivable 450       Interest revenue 2250       Notes receivable 27000 Interest receivable: Lopez 450 =27000*10%/12*2 Ralph 330 =74250*8%/360*20 Joe 318 =95400*8%/360*15 Total 1098

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