Journal Entries (Note Received, Renewed, and Collected) 1. Prepare general journal entries for the transactions. When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Jan. 16 Received a 30-day, 6% note in payment for merchandise sale of $20,000. Feb. 15 Received $100 (interest) on the old (January 16) note; the old note is renewed for 30 days at 7%. Mar. 17 Received principal and interest on the new (February 15) note. 19 Received a 60-day, 6% note in payment for accounts receivable balance of $8,000. May 18 Received $80 (interest) plus $1,000 principal on the old (March 19) note; the old note is renewed for 60 days (from May 18) at 6%. July 17 Received principal and interest on the new (May 18) note. Assume 360 days in a yea
Journal Entries (Note Received, Renewed, and Collected) 1. Prepare general journal entries for the transactions. When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Jan. 16 Received a 30-day, 6% note in payment for merchandise sale of $20,000. Feb. 15 Received $100 (interest) on the old (January 16) note; the old note is renewed for 30 days at 7%. Mar. 17 Received principal and interest on the new (February 15) note. 19 Received a 60-day, 6% note in payment for accounts receivable balance of $8,000. May 18 Received $80 (interest) plus $1,000 principal on the old (March 19) note; the old note is renewed for 60 days (from May 18) at 6%. July 17 Received principal and interest on the new (May 18) note. Assume 360 days in a yea
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Prepare general journal entries for the transactions.
When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank.
| Jan. 16 | Received a 30-day, 6% note in payment for merchandise sale of $20,000. |
| Feb. 15 | Received $100 (interest) on the old (January 16) note; the old note is renewed for 30 days at 7%. |
| Mar. 17 | Received principal and interest on the new (February 15) note. |
| 19 | Received a 60-day, 6% note in payment for |
| May 18 | Received $80 (interest) plus $1,000 principal on the old (March 19) note; the old note is renewed for 60 days (from May 18) at 6%. |
| July 17 | Received principal and interest on the new (May 18) note. |
Assume 360 days in a year.
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