ment These transactions took place for Swifty Corporation 2016 May 1 Received a

Question

ment These transactions took place for Swifty Corporation 2016 May 1 Received a $3,300, 1 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.) 2-month, 6% note in exchange for an outstanding account receivable from R. Stoney. Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.(Credit account titles are automatically indented when am presented in the problem.) Date Account Titles and Explanation Credit

Explanation / Answer

SOLUTION:

Debit Credit 01-May-16 Notes Receivable 3,300 Accounts Receivable 3,300 31-Dec-16 Interest Receivable 132 Interest Revenue 132 ($3,300 * 6% * 8/12) 01-May-17 Cash 3,498 Notes Receivable 3,300 Interest Receivable 132 Interest Revenue 66 ($3,300 * 6% * 4/12)

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