These transactions took place for Blue Spruce Corp. Record the transactions in t

Question

These transactions took place for Blue Spruce Corp.

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 amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

2016 May 1 Received a $3,400, 12-month, 6% note in exchange for an outstanding account receivable from R. Stoney. 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.)

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Dr Cr May 01 '16 Note receivable Dr                 3,400.00 To Account receivable             3,400.00 Dec31'2016 Interest receivable dr                     136.00 To Interest revenue                 136.00 (3400*8/12*6%) May 01'2017 Cash Dr                 3,604.00 To Note receivable             3,400.00 To Interest receivable                 136.00 To Interesr Revenue(3400*6%*4/12)                   68.00

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