Accounting for Notes Receivable On November 30, 2019, Tucker Products performed computer programming services for Thomas Inc. in exchange for a 5-month, $125,000, 9% note receivable. Thomas paid Tucker the full amount of interest and principal on April 30, 2020. Required: Prepare the necessary entries for Tucker to record the transactions described above. For a compound transaction, if an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar. Nov. 30, 2019 Notes Receivable Sales Revenue Record issuance of the note Dec. 31, 2019 Interest Receivable Interest Income Record accrued interest income Apr. 30, 2020 Cash Notes Receivable Interest Receivable Interest Income
Accounting for Notes Receivable On November 30, 2019, Tucker Products performed computer programming services for Thomas Inc. in exchange for a 5-month, $125,000, 9% note receivable. Thomas paid Tucker the full amount of interest and principal on April 30, 2020. Required: Prepare the necessary entries for Tucker to record the transactions described above. For a compound transaction, if an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar. Nov. 30, 2019 Notes Receivable Sales Revenue Record issuance of the note Dec. 31, 2019 Interest Receivable Interest Income Record accrued interest income Apr. 30, 2020 Cash Notes Receivable Interest Receivable Interest Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounting for Notes Receivable
On November 30, 2019, Tucker Products performed computer programming services for Thomas Inc. in exchange for a 5-month, $125,000, 9% note receivable. Thomas paid Tucker the full amount of interest and principal on April 30, 2020.
Required:
Prepare the necessary entries for Tucker to record the transactions described above. For a compound transaction, if an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar.
| Nov. 30, 2019 | Notes Receivable | ||
| Sales Revenue | |||
| Record issuance of the note | |||
| Dec. 31, 2019 | Interest Receivable | ||
| Interest Income | |||
| Record accrued interest income | |||
| Apr. 30, 2020 | Cash | ||
| Notes Receivable | |||
| Interest Receivable | |||
| Interest Income |
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