Bramble 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.How would I enter these into a journal? Nov. 1 Loaned $ 13,200 cash to Manny Lopez on a 12-month, 10% note.Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $ 24,750, 90-day, 8% note.16 Received a $ 29,100, 180 day, 8% note in exchange for Joe Fernetti’s outstanding accounts receivable.31 Accrued interest revenue on all notes receivable.

Calculation of Interest Revenue on December 31: Notes Receivable - Manny Lopez ($13,200 * 10% * 2 month / 12 month) $220 Notes Receivable - Ralph Kremer, Inc.($24,750 * 8% * 20 days / 360 days) $110 Notes Receivable - Joe Fernetti’s ($29,100 * 8% * 15 days / 360 days) $97 Total interest Revenue $427 Date Account Titles and Explanation Debit Credit Nov. 1 Notes Receivable - Manny Lopez $13,200 Cash $13,200 Dec. 11 Notes Receivable - Ralph Kremer, Inc. $24,750 Sales Revenue $24,750 Dec. 16 Notes Receivable - Joe Fernetti’s $29,100 Accounts Receivable - Joe Fernetti’s $29,100 Dec. 31 Interest Receivable $427 Interest Revenue $427

Answered: Bramble Supply Co. has the following…

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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Bramble 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.

How would I enter these into a journal?

Nov. 1		Loaned $ 13,200 cash to Manny Lopez on a 12-month, 10% note.
Dec. 11		Sold goods to Ralph Kremer, Inc., receiving a $ 24,750, 90-day, 8% note.
16		Received a $ 29,100, 180 day, 8% note in exchange for Joe Fernetti’s outstanding accounts receivable.
31		Accrued interest revenue on all notes receivable.

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