Spring 2018 Intro to Fin Acct ACC281 (Section 4) Homework: Chapter 7 HW Score: 0

Question

Spring 2018 Intro to Fin Acct ACC281 (Section 4) Homework: Chapter 7 HW Score: 0 of 10 pts E7-26A (similar to) Journalize the following transactions of Arabian Inc., which ends its accounting year on June 30 7 of 12 (3 complete) 1 Loaned s 15.000 cash to Britt Durant on a one-year 8% note 6 sold goods to Lawn Pro receiving a 90-day 12% note for S14.000 Ignore cost of goods sold 30 Made a single entry to Apr Jun ccrue interest revenue on both notes. Use a 360-day year for interest computations and round to the nearest dollar (Record debits first, then credits. Exclude explanations from any journal entries) Journalize the loan to Britt Durant Journal Entry Date Accounts Apr Debit Credit

Explanation / Answer

Journal entries Under Periodic Inventory System Date Accounts title and explanations Debit $ Credit $ 1-Apr Notes receivable Dr. 15000     cash Account 15000 6-Jun Notes receivable Dr. 14000      Sales revenue 14000 30-Jun Interest receivable Dr. 412      Interest revenue 412 Note: Interest receivable on June30: Notes receivable of $15000 at 8% (15000*8%*3/12) 300 Notes receivable of $14000 at 12% (14000*12%*24/360) 112 Total Interest receivable 412

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.