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 (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 2P

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4. AB company receives $10,000 for a 6 month, 8% note on 11/1/20. Prepare the journal entry for the receipt. Account Debit Credit 5. Prepare the journal entry to accrue interest on the above note at 12/31/20. Account Debit Credit 6. Prepare the entry to record payment of the above note in full on it's due date of 5/1/21. Account Debit Credit 7. AB Company purchases a truck in the amount of $15,000. Additional costs include sales tax of $1500, painting of $2500, license of $150 and a 1 year auto insurance policy of $1200. Complete the journal entry for the auto purchase. Account Debit Credit
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