Learning Objective 6: Apply GAAP for notes receivable) Garrett Meals completedthe following selected transactions:2018Oct 31 Sold goods to Rose Foods, receiving a $32,000, three-month 5.5% note. (You dodo not need to make the cost of goods sold journal entry for this transaction.)Dec 31 Made an adjusting entry to accrue interest on the Rose Foods note.2017Jan 31 Collected the Rose Foods note.Nov 11 Loaned $15,800 to Franklin Shops, receiving a 90-day, 9.75% note.Dec 31 Accrued the interest on the Franklin Shops note.Requirements1. Record the transactions in Garrett Meals’ journal. Assume that no sales returns areexpected. Round all amounts to the nearest dollar. Explanations are not required.2. Show what Garrett Meals will report on its comparative classified balance sheet atDecember 31, 2019, and December 31, 2018, for Notes Receivable and Interest Receivable
Learning Objective 6: Apply GAAP for notes receivable) Garrett Meals completed
the following selected transactions:
2018
Oct 31 Sold goods to Rose Foods, receiving a $32,000, three-month 5.5% note. (You do
do not need to make the cost of goods sold journal entry for this transaction.)
Dec 31 Made an
2017
Jan 31 Collected the Rose Foods note.
Nov 11 Loaned $15,800 to Franklin Shops, receiving a 90-day, 9.75% note.
Dec 31 Accrued the interest on the Franklin Shops note.
Requirements
1. Record the transactions in Garrett Meals’ journal. Assume that no sales returns are
expected. Round all amounts to the nearest dollar. Explanations are not required.
2. Show what Garrett Meals will report on its comparative classified balance sheet at
December 31, 2019, and December 31, 2018, for Notes Receivable and Interest Receivable
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