Morton Company had the following select transactions. Apr. 1, 2020 Accepted Remington Company's 1-year, 12% note in settlement of a $25,000 account receivable. July 1, 2020 Loaned $15,000 cash to Jenny Green on a 9-month, 10% note. Dec. 31, 2020 Accrued interest on all notes receivable. Apr. 1, 2021 Received principal plus interest on the Remington note. Apr. 1, 2021 Jenny Green dishonored its note: Morton does not expect collection Instructions Prepare journal entries to record the transactions. Morton prepares adjusting entries once a year on December 31.
Morton Company had the following select transactions. Apr. 1, 2020 Accepted Remington Company's 1-year, 12% note in settlement of a $25,000 account receivable. July 1, 2020 Loaned $15,000 cash to Jenny Green on a 9-month, 10% note. Dec. 31, 2020 Accrued interest on all notes receivable. Apr. 1, 2021 Received principal plus interest on the Remington note. Apr. 1, 2021 Jenny Green dishonored its note: Morton does not expect collection Instructions Prepare journal entries to record the transactions. Morton prepares adjusting entries once a year on December 31.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....
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Transcribed Image Text:Question 2
Morton Company had the following select transactions.
Apr. 1, 2020 Accepted Remington Company's 1-year, 12% note in settlement of a $25,000 account
receivable.
July 1, 2020 Loaned $15,000 cash to Jenny Green on a 9-month, 10% note.
Dec. 31, 2020 Accrued interest on all notes receivable.
Apr. 1, 2021 Received principal plus interest on the Remington note.
Apr. 1, 2021 Jenny Green dishonored its note: Morton does not expect collection
Instructions
Prepare journal entries to record the transactions. Morton prepares adjusting entries once a year on
December 31.
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