Exercise 9-10 Elburn Supply Co. has the following transactions related to notes

Question

Exercise 9-10 Elburn Supply Co. has the following transactions related to notes receivable during the las 2 months of 2017. The company does not make entries to accrue interest except at December 31 Nov. 1 Dec. 11 16 31 Loaned $30,000 cash to Manny Lopez on a 12-month, 10% note Sold goods to Ralph Kremer, Inc., receiving a $85,500, 90-day, 8% note. Received a $87,840, 180 day, 10% note in exchange for Joe Fernetti's outstanding accounts receivable. Accrued interest revenue on all notes receivable.

Explanation / Answer

Nov-01 Notes Receivable 30000         Cash 30000 Dec-11 Notes Receivable 85500          Sales 85500 Dec-16 Notes Receivable 87840          Accounts Receivable 87840 Dec-31 Interest Receivable 1246          Interest Revenue 1246 b Nov-01 Cash 33000          Interest Receivable 500          Interest Revenue 2500          Notes Receivable 30000 Accrued interest: Lopez note 500 =30000*10%/12*2 Ralph note 380 =85500*8%/360*20 Joe's note 366 =87840*10%/360*15 Total 1246

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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