May June 22 22 21 July 21 21 28 88 Sept. 11 Nov. 10 Received a 30-day, 6% note in payment for merchandise sale of $24,000. Received $120.00 cash (interest) on the old (May 22) note; the old note is renewed for 30 days at 7%. Received principal and interest on the new (June 21) note. Received a 45-day, 7% note in payment for accounts receivable balance of $11,200. * Received $98.00 cash (interest) plus $2,000 principal on the old (July 28) note; the old note is renewed for 60 days (from September 11) at 7.5%. Received principal and interest on the new (September 11) note. Required: Prepare general journal entries for the above transactions.

May June 22 22 21 July 21 21 28 88 Sept. 11 Nov. 10 Received a 30-day, 6% note in payment for merchandise sale of $24,000. Received $120.00 cash (interest) on the old (May 22) note; the old note is renewed for 30 days at 7%. Received principal and interest on the new (June 21) note. Received a 45-day, 7% note in payment for accounts receivable balance of $11,200. * Received $98.00 cash (interest) plus $2,000 principal on the old (July 28) note; the old note is renewed for 60 days (from September 11) at 7.5%. Received principal and interest on the new (September 11) note. Required: Prepare general journal entries for the above transactions.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 2CE

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Computing the Proceeds from the Sale of Notes Receivable Below are several customer notes receivable that were sold without recourse. 1. An 8,000, 60-day, non-interest-bearing note sold after 15 days at 12%. 2. A 9,000, 12%, 60-day note sold alter 30 days at 14% 3. A 6,000, 10%, 90-day note sold after 30 days at 12% 4. A 10,000, 12%, 120-day note sold after 45 days at 15% Determine the proceeds from each of the preceding sales of customer notes receivable. (Assume a 360-day year.)
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2. On Oct 1, 20X1 ABC Co. discounted a one year 12% P600,000 note received from a customer on January 1, 20X1 with a bank at 14% on a without recourse basis. How much is the proceeds from note discounting? 576,480 648,480 654,000 672,000
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(P5) Accounting for notes receivable Journalize the following transactions: March 1 Received a $3,000, 90 day, 18 percent promissory note in settlement of accounts receivable from Hosta Company. March 31 Discounted the note to a bank(discount rate = 19 percent).
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da 14 (Notes Receivable and Notes Receivable Discounted) The following notes receivable transactions occurred for the Hara Company during the last three months of the current year. (Assume all notes are dated the day the transaction occurred.) Oct. 9 Received a $5,000, 12%, 60-day note from Kanda a customer. Oct. 12 Received a $6,000, 10%, 90-day note from Darun a customer. Oct. 15 Discounted the Kanda note with recourse at the bank at 14%. Nov. 11 Discounted the Darun note with recourse at the bank at 15%. Nov. 16 Received a $8,000, 12%, 60-day note from Nena a customer. Nov. 20 Received a $6,000, 11%, 120-day note from Wanna a customer. Dec. 1 Received a $9,000, 13%, 90-day note from Wirun a customer. Dec. 8 Received notice that the Kanda note was paid at maturity. Dec. 10 Discounted the Wanna note with recourse at the bank at 13%. Required 1. Prepare journal entries to record the preceding note transactions and the necessary adjusting entries on December 31. (Assume that Hara does…
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