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Journal Entry: 9/19 - Issued a 60-day, 5%, $22,500 note to a customer 11/18 - The note issued on 9/19/21 was not collected, so the note was reclassified as Accounts Receivable, with accrued interest. Adjusting Journal Entry: 12/31 - Record interest due on outstanding note receivable that was converted to Accounts Receivable in November. A determination whether to write off the note as uncollectible will be made in 1Q22.

Journal Entry: 9/19 - Issued a 60-day, 5%, $22,500 note to a customer 11/18 - The note issued on 9/19/21 was not collected, so the note was reclassified as Accounts Receivable, with accrued interest. Adjusting Journal Entry: 12/31 - Record interest due on outstanding note receivable that was converted to Accounts Receivable in November. A determination whether to write off the note as uncollectible will be made in 1Q22.

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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Journal Entry:

9/19 - Issued a 60-day, 5%, $22,500 note to a customer

11/18 - The note issued on 9/19/21 was not collected, so the note was reclassified as Accounts Receivable, with accrued interest.

Adjusting Journal Entry:

12/31 - Record interest due on outstanding note receivable that was converted to Accounts Receivable in November. A determination whether to write off the note as uncollectible will be made in 1Q22.

Account & Unadjusted Trial Balance data Income statement data: Advertising expense Bad Debt Expense Cost of goods sold Delivery expense Depreciation expense-office buildings and equipment Depreciation expense-store buildings and equipment Gain (Loss) on asset disposal Income tax expense Insurance expense Interest expense Interest revenue Miscellaneous administrative expense Miscellaneous selling expense Office rent expense Office salaries expense Office supplies expense Sales 150,000 3,500,000 30,000 30,000 100,000 1,933 140,500 21,000 30,000 7,500 14,000 50,000 170,000 10,000 5,313,000 Sales commissions 185,000 Sales salaries expense Store supplies expense 385,000 21,000
Transcribed Image Text:Account & Unadjusted Trial Balance data Income statement data: Advertising expense Bad Debt Expense Cost of goods sold Delivery expense Depreciation expense-office buildings and equipment Depreciation expense-store buildings and equipment Gain (Loss) on asset disposal Income tax expense Insurance expense Interest expense Interest revenue Miscellaneous administrative expense Miscellaneous selling expense Office rent expense Office salaries expense Office supplies expense Sales 150,000 3,500,000 30,000 30,000 100,000 1,933 140,500 21,000 30,000 7,500 14,000 50,000 170,000 10,000 5,313,000 Sales commissions 185,000 Sales salaries expense Store supplies expense 385,000 21,000
Balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciation-office buildings and equipment Accumulated depreciation-store buildings and equipment Allowance for doubtful accounts Bonds payable 1,580,000 4,126,000 8,450 500,000 Cash 217,650 Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding 1,700,000 Cash dividends - common stock 50,000 Cash dividends - preferred stock Dividends Payable - common stock Dividends Payable - preferred stock 40,000 Goodwill 700,000 Income tax payable Interest receivable Merchandise Inventory Land Office buildings Office Equipment Paid-in capital - Treasury Stock Paid-in capital in excess of par-common stock Paid-in capital in excess of par-preferred stock Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued) Premium on bonds payable Prepaid Insurance Retained earnings Store buildings Store Equipment Treasury stock Unearned Revenues 44,000 1,200 778,000 2,000,000 4,000,000 320,000 13,000 736,800 170,000 1,280,000 19,000 30,000 10,409,433 9,000,000 3,560,000 178,200 112,000
Transcribed Image Text:Balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciation-office buildings and equipment Accumulated depreciation-store buildings and equipment Allowance for doubtful accounts Bonds payable 1,580,000 4,126,000 8,450 500,000 Cash 217,650 Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding 1,700,000 Cash dividends - common stock 50,000 Cash dividends - preferred stock Dividends Payable - common stock Dividends Payable - preferred stock 40,000 Goodwill 700,000 Income tax payable Interest receivable Merchandise Inventory Land Office buildings Office Equipment Paid-in capital - Treasury Stock Paid-in capital in excess of par-common stock Paid-in capital in excess of par-preferred stock Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued) Premium on bonds payable Prepaid Insurance Retained earnings Store buildings Store Equipment Treasury stock Unearned Revenues 44,000 1,200 778,000 2,000,000 4,000,000 320,000 13,000 736,800 170,000 1,280,000 19,000 30,000 10,409,433 9,000,000 3,560,000 178,200 112,000
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