Ayayai Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $ 18,000 cash to Manny Lopez on a 12-month, 8% note. Dec. 11 Sold
Ayayai Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $ 18,000 cash to Manny Lopez on a 12-month, 8% note. Dec. 11 Sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ayayai Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31.
| Nov. 1 | Loaned $ 18,000 cash to Manny Lopez on a 12-month, 8% note. | |
| Dec. 11 | Sold goods to Ralph Kremer, Inc., receiving a $ 36,000, 90-day, 6% note. | |
| 16 | Received a $ 21,600, 180 day, 12% note in exchange for Joe Fernetti’s outstanding |
|
| 31 | Accrued interest revenue on all notes receivable. |
(a)
Journalize the transactions for Ayayai Supply Co. (Ignore entries for cost of goods sold.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Use 360 days for calculation. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)
Transcribed Image Text:Ayayai Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not
make entries to accrue interest except at December 31.
Nov. 1
Loaned $ 18,000 cash to Manny Lopez on a 12-month, 8% note.
Dec. 11
Sold goods to Ralph Kremer, Inc, receiving a $ 36,000, 90-day, 6% note.
16
Received a $ 21,600, 180 day. 12% note in exchange for Joe Fernetti's outstanding accounts receivable.
31
Accrued interest revenue on all notes receivable.
(a)
Journalize the transactions for Ayayai Supply Co. (lgnore entries for cost of goods sold.) (Credit account titles are automatically
indented when amount is entered. Do not indent manually. Use 360 days for calculation. Round answers to O decimal places, eg. 5,275.
Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
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