Carla Vista Co. closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $23,600. Notes Receivable include the following.Date Maker Face Value Term Maturity Date Interest RateApril 21 Coote Inc. $5,600 90 days July 20 8%May 25 Brady Co. 7,200 60 days July 24 10%June 30 BMG Corp. 10,800 6 months December 31 6%During July, the following transactions were completed.July 5 Made sales of $4,110 on Carla Vista Co. credit cards.14 Made sales of $600 on Visa credit cards. The credit card service charge is 3%.20 Received payment in full from Coote Inc. on the amount due.24 Received payment in full from Brady Co. on the amount due.Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Receivables from Coote Inc. and Brady Co. are received in July. Only BMG Corp. is left for which…

Answered: Carla Vista Co. closes its books on its…

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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Carla Vista Co. closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $23,600. Notes Receivable include the following.

Date	Maker	Face Value	Term	Maturity Date	Interest Rate
April 21	Coote Inc.	$5,600	90 days	July 20	8%
May 25	Brady Co.	7,200	60 days	July 24	10%
June 30	BMG Corp.	10,800	6 months	December 31	6%

During July, the following transactions were completed.

July 5		Made sales of $4,110 on Carla Vista Co. credit cards.
14		Made sales of $600 on Visa credit cards. The credit card service charge is 3%.
20		Received payment in full from Coote Inc. on the amount due.
24		Received payment in full from Brady Co. on the amount due.

Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

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