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How did 80 and 160 come from? Please explain, thank you.

How did 80 and 160 come from? Please explain, thank you.

FINANCIAL ACCOUNTING
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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How did 80 and 160 come from? Please explain, thank you.

Date General Journal Debit ($) Credit ($) Nov 1 Notes receivable - Kelly White 6,000 Accounts receivable- Kelly White 6,000 Dec 31 Interest receivable 80 Interest revenue 80 Apr 30 Cash 6,240 Notes receivable 6,000 Interest revenue 160 Interest receivable 80
Transcribed Image Text:Date General Journal Debit ($) Credit ($) Nov 1 Notes receivable - Kelly White 6,000 Accounts receivable- Kelly White 6,000 Dec 31 Interest receivable 80 Interest revenue 80 Apr 30 Cash 6,240 Notes receivable 6,000 Interest revenue 160 Interest receivable 80
Prepare journal entries to record these selected transactions for Vitalo Company (assume that no reversing entries are recorded). Exercise 9-12 Honoring a note P3 Accepted a $6,000, 180-day, 8% note dated November 1 from Kelly White in granting a time extension on her past-due account receivable. Adjusted the year-end accounts for the accrued interest earned on the White note. Nov. 1 Dec. 31 Apr. 30 White honors her note when presented for payment; February has 28 days for the current year.
Transcribed Image Text:Prepare journal entries to record these selected transactions for Vitalo Company (assume that no reversing entries are recorded). Exercise 9-12 Honoring a note P3 Accepted a $6,000, 180-day, 8% note dated November 1 from Kelly White in granting a time extension on her past-due account receivable. Adjusted the year-end accounts for the accrued interest earned on the White note. Nov. 1 Dec. 31 Apr. 30 White honors her note when presented for payment; February has 28 days for the current year.
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