I'm not sure how to journal the principal plus interest for the last transaction. I think that I do 4500-180 for Cash but I'm not sure if I put 180 for the interest revenue as well. 2021MayDec.2022May1 Received a $4,500, 12-month, 6% note in exchange for an outstanding account receivable from R. Stoney.31 Accrued interest revenue on the R. Stoney note.1 Received principal plus interest on the R. Stoney note. (No interest has been accrued since December 31, 2021.)Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.(Creditaccount titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in theproblem.)DateMay 1, 2021Dec. 31, 2021May 1, 2022Account Titles and ExplanationNotes ReceivableAccounts ReceivableInterest ReceivableInterest RevenueCashInterest ReceivableInterest RevenueNotes ReceivableDebit4500180LOTCredit45001801804500

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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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I'm not sure how to journal the principal plus interest for the last transaction. I think that I do 4500-180 for Cash but I'm not sure if I put 180 for the interest revenue as well.

2021
May
Dec.
2022
May
1 Received a $4,500, 12-month, 6% note in exchange for an outstanding account receivable from R. Stoney.
31 Accrued interest revenue on the R. Stoney note.
1 Received principal plus interest on the R. Stoney note. (No interest has been accrued since December 31, 2021.)
Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.(Credit
account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the
problem.)
Date
May 1, 2021
Dec. 31, 2021
May 1, 2022
Account Titles and Explanation
Notes Receivable
Accounts Receivable
Interest Receivable
Interest Revenue
Cash
Interest Receivable
Interest Revenue
Notes Receivable
Debit
4500
180
LOT
Credit
4500
180
180
4500

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Step 1

Note receivable is one of the current asset of the business. It means promise has been received from customer to pay amount in specified period along with specified interest.

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