Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Allowanc

Question

Accounts Payable
Accounts Receivable
Accumulated Depreciation-Equipment
Allowance for Doubtful Accounts
Bad Debt Expense
Cash
Common Stock
Cost of Goods Sold
Dividends
Income Tax Expense
Income Taxes Payable
Interest Receivable
Interest Revenue
Inventory
No Entry
Notes Receivable
Other Operating Expenses
Other Receivables
Retained Earnings
Sales Discounts
Sales Returns and Allowances
Sales Revenue
Service Charge Expense
Supplies
Supplies Expense

Exercise 8-10 Sharidan Company has tha following transactions ralated to notes recaivable during the last 2 menths of the year. The company doas nat malkoa entrias to acoue interest excopt at Dacamher 31. (omit cnst of gaods sald ntries.) Nov. 1 Loaned $55,800 cash to C. Bohr on 12-month, 5% note. Dec. 11 Sul Wouds lu K. R. Pine, Inc., receiving d $5.400, 90-day, 6% note. Dec. 16 Received a $19,200, 180-day, 12% note to settle an open account from A. Murdock. Dec. 31 Accrued interest revenue on al notes receivable. lourmaliza the transactions for Sheridan Company (Credit accoent titles are autonatically indented when amount is entered. Do not indent manually. Record jaerrnal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit LINK TO Question Attempts: of 2 used AVE FOR LATER

Explanation / Answer

JOURNAL ENTRY :

Interest = (55800*5%*2/12+5400*6%*20/360+19200*12%*15/360) = 579

DATE ACCOUNTS & EXPLANATION DEBIT CREDIT Nov 1 Notes receivable a/c 55800      Cash a/c 55800 (TO record loan given) Dec 11 Notes receivable a/c 5400     Sales revenue a/c 5400 (TO record sales) Dec 16 Notes receivable a/c 19200      Account receivable a/c 19200 (To record notes receivable) Dec 31 Interest receivable a/c 579       Interest revenue a/c 579 (To record interest receivable)

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