Sou und tie credit car charge expense for Colaw Stores. E8-10 Elburn Supply Co.

Question

Sou und tie credit car charge expense for Colaw Stores. E8-10 Elburn Supply Co. has the following transactions related to notes receivab the last 2 months of 2015. The company does not make entries to accrue i at December 31. Nov. 1 Loaned $30,000 cash to Manny Lopez on a 12 month, 10% note. Dec. 1 1 ntere Sold goods to Ralph Kremer, Inc., receiving a $6,750, 90-day, 8% note. Received a $4,000, 180 day, 9% note in exchange for Joe Fernetti's out accounts receivable. Accrued interest revenue on all notes receivable. 16 31 Instructions (a) Journalize the transactions for Elburn Supply Co. (b) Record the collection of the Lopez note at its maturity in 2016.

Explanation / Answer

Journal entry :

Record collection of notes :

Date accounts & explanation debit credit Nov 1 Notes receivable 30000     Cash a/c 30000 Dec 11 Notes receivable a/c 6750      Sales revenue a/c 6750 Dec 16 Notes receivable 4000      Account receivable 4000 dec 31 Interest receivable a/c 545      Interest revenue a/c 545

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