ment NEXT Sunland Com except at December 31. (Omit cost of goods sold entries.)

Question

ment NEXT Sunland Com except at December 31. (Omit cost of goods sold entries.) pany has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest Nov. 1 Loaned $59,400 cash to C. Bohr on a 12-month, 7% note. Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $1,800, 90-day, 9% note. | Dec. 16 Received a $16,800, 180-day, 11% note to settle an open account from A. Murdock. Dec. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Sunland Company (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Credit Nov. 1 Notes Receivable 1800 Dec. 11 Notes Receivable 1800 16800 Dec. 16 Notes Receivable 16800 Accounts Receivable 7097 Dec. 31 |Interest Receivable 7097 Interest Revenue MacBook Pro

Explanation / Answer

Journalize transaction :

Interest revenue = (59400*7%*2/12+1800*9%*20/360+16800*11%*15/360) =779

date accounts & explanation debit credit Nov 1 Notes receivable a/c 59400      Cash a/c 59400 Dec 11 Notes receivable a/c 1800      Sales revenue a/c 1800 Dec 16 Notes receivable a/c 16800     Account receivable a/c 16800 Dec 31 Interest receivable a/c 779     Interest revenue a/c 779

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