Accruing interest revenue and recording collection of a noteOn December 1, Kyle Corporation accepted a 60-day, 9%, $12,000 note receivable from J. Michael in exchange for his account receivable.RequirementsJournalize the transaction on December 1.Journalize the adjusting entry needed on December 31 to accrue interest revenue. Round to the nearest dollar.Journalize the collection of the principal and interest at maturity. Specify the date. Round to the nearest dollar.

The interest income on notes receivable needs to be accrued at the end of the accounting period as…

Answered: Accruing interest revenue and recording…

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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Accruing interest revenue and recording collection of a note

On December 1, Kyle Corporation accepted a 60-day, 9%, $12,000 note receivable from J. Michael in exchange for his account receivable.

Requirements

Journalize the transaction on December 1.
Journalize the adjusting entry needed on December 31 to accrue interest revenue. Round to the nearest dollar.
Journalize the collection of the principal and interest at maturity. Specify the date. Round to the nearest dollar.

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