Answered: Notes Receivable Entries 1. Record…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Notes Receivable Entries

1. Record the transactions in a general journal.

When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year.

J. K. Pratt Co. had the following transactions:

20-1
July 20	Received a $750, 30-day, 5% note from J. Akita in payment for sale of merchandise.
Aug. 19	J. Akita paid note issued July 20 plus interest.
25	Sold merchandise on account to L. Beene, $1,100.
Sept. 5	L. Beene paid $100 and gave a $1,000, 30-day, 6% note to extend time for payment.
Oct. 5	L. Beene paid note issued September 5, plus interest.
10	Sold merchandise to R. Harris for $750: $50 plus a $700, 30-day, 6% note.
Nov. 9	R. Harris paid $200 plus interest on note issued October 10 and extended the note ($500) for 30 days.
Dec. 9	R. Harris paid note extended on November 9, plus interest.
10	Sold merchandise on account to B. Kraus, $1,500.
15	B. Kraus paid $150 on merchandise purchased on account, and gave a $1,350, 30-day, 7% note to extend time for payment.
20-2
Jan. 14	B. Kraus's note of December 15 is dishonored.
Feb. 13	Collected B. Kraus’s dishonored note, plus interest at 7% on the maturity value.

General Jouranl
1. Record the transactions in a general journal.
When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Assume 360 days in a year.
Page:
1
2
3
4
5
6
。
7
8 25
20
DATE
21
20-1 July 20 Notes Receivable
Sales
✓
Aug. 19
9
10
11 Sept. 5
12
13
14
15 Oct. 5
16
17
18
19 10
ACCOUNT TITLE
Cash
Notes Receivable
Interest Revenue
Accounts Receivable/L. Beene
Sales
✓
Cash
✓
Notes Receivable
✓
Accounts Receivable/L. Beene
Cash
Notes Receivable
✓
Interest Revenue
Cash
Notes Receivable
Sales
DOC. POST.
NO. REF.
DEBIT
750 ✓
753.13 ✔
00 000 000 000
✓
✓
✓
1,005 ✔
✓
✓
CREDIT
1
750 ✔ 2
3
4
750 ✔ 5
3.136
1,100 9
10
11
12
1,100 ✔ 13
14
15
1,000✔ 16
5 ✓
17
18
19
20
750 21

23 Nov. 9
24
25
26
27
28 Dec. 9
29
30
31
32 10
Cash
Notes Receivable (old note)
Notes Receivable (new note)
Interest Revenue
41
42
43 Feb. 13
44
45
Cash
Notes Receivable
Interest Revenue
Accounts Receivable/B. Kraus
Sales
33
34
35 15
36
37
38
39 20-2 Jan. 14 Accounts Receivable/B. Kraus
40
Notes Receivable
Cash
Notes Receivable
Accounts Receivable/B. Kraus
Interest Revenue
Cash
Accounts Receivable/B. Kraus
Interest Revenue
X
X
202.50 X
500
505 X
1,500
< x
1,350 X
150 X
1,357.
1,365.:
297.50 X
2.50 X
23
25
26
27
28
29
5 X 30
31
32
1,500✔ 33
34
35
36
1,500 ✓ 37
38
39
1,350 40
7.88 ✔ 41
42
43
1,357.✔✔ 44
7.92 ✔ 45
500✔
24

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions