2021 Oct31Sold goods to Basic Foods, receiving a $31,000, three-month, 6% note. (You do not need to make the cost of goods sold journal entry for this transaction.)Dec31Made an adjusting entry to accrue interest on the Basic Foods note.2022 Jan31Collected the Basic Foods note.Nov11Loaned $14,600 cash to Strathroy Provisions, receiving a 90-day, 9.25% note.Dec31Accrued the interest on the Strathroy Provisions note. Requirement 2. Show what Bueno Foods will report on its comparative classified balance sheet at December 31, 2022, andDecember 31, 2021, for Notes Receivable and Interest Receivable. (Only report the related transactions given. Ignore the cash balance as the transactions provided are only selected transactions.)

Interest accrued on Dec 31, 2021 = Face value of notes x rate of interest x no. of months/12 =…

Answered: 2021 Oct 31 Sold goods to Basic…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2021
Oct	31	Sold goods to Basic Foods, receiving a $31,000, three-month, 6% note. (You
		do not need to make the cost of goods sold journal entry for this transaction.)
Dec	31	Made an adjusting entry to accrue interest on the Basic Foods note.
2022
Jan	31	Collected the Basic Foods note.
Nov	11	Loaned $14,600 cash to Strathroy Provisions, receiving a 90-day, 9.25% note.
Dec	31	Accrued the interest on the Strathroy Provisions note.

Requirement 2. Show what Bueno Foods will report on its comparative classified balance sheet at December 31, 2022, and

December 31, 2021, for Notes Receivable and Interest Receivable. (Only report the related transactions given. Ignore the cash balance as the transactions provided are only selected transactions.)

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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