Learning Objective 6: Apply GAAP for notes receivable) Markley Foodscompleted the following selected transactions.2018Oct 31 Sold goods to Basic Foods, receiving a $30,000, three-month, 5.25% note. (Youdo 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 Basic Foods note.2019Jan 31 Collected the Basic Foods note.Nov 11 Loaned $15,800 cash to Straord Shops, receiving a 90-day, 10.0% note.Dec 31 Accrued the interest on the Straord Shops note.Requirements1. Record the transactions in Markley Foods’ journal. Assume that no sales returns areexpected. Round all amounts to the nearest dollar. Explanations are not required.2. Show what Markley Foods 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) Markley Foods
completed the following selected transactions.
2018
Oct 31 Sold goods to Basic Foods, receiving a $30,000, three-month, 5.25% note. (You
do not need to make the cost of goods sold
Dec 31 Made an
2019
Jan 31 Collected the Basic Foods note.
Nov 11 Loaned $15,800 cash to Straord Shops, receiving a 90-day, 10.0% note.
Dec 31 Accrued the interest on the Straord Shops note.
Requirements
1. Record the transactions in Markley Foods’ journal. Assume that no sales returns are
expected. Round all amounts to the nearest dollar. Explanations are not required.
2. Show what Markley Foods will report on its comparative classified
December 31, 2019, and December 31, 2018, for Notes Receivable and Interest Receivable.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
