Notes Receivable Entries J. K. Pratt Co. had the following transactions: 20-1 July 20 Received a $800, 30-day, 4% 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, $1,200. Sept. 5 L. Beene paid $100 and gave a $1,100, 30-day, 4% 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, 4% note. Nov. 9 R. Harris paid $140 plus interest on note issued October 10 and extended the note ($560) 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 $120 on merchandise purchased on account, and gave a $1,380, 30-day, 6% 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 6% on the maturity value. Required: Record the transactions in a general journal. Assume 360 days in a year.
Notes Receivable Entries J. K. Pratt Co. had the following transactions: 20-1 July 20 Received a $800, 30-day, 4% 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, $1,200. Sept. 5 L. Beene paid $100 and gave a $1,100, 30-day, 4% 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, 4% note. Nov. 9 R. Harris paid $140 plus interest on note issued October 10 and extended the note ($560) 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 $120 on merchandise purchased on account, and gave a $1,380, 30-day, 6% 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 6% on the maturity value. Required: Record the transactions in a general journal. Assume 360 days in a year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Notes Receivable Entries
J. K. Pratt Co. had the following transactions:
| 20-1 | |
| July 20 | Received a $800, 30-day, 4% 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, $1,200. |
| Sept. 5 | L. Beene paid $100 and gave a $1,100, 30-day, 4% 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, 4% note. |
| Nov. 9 | R. Harris paid $140 plus interest on note issued October 10 and extended the note ($560) 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 $120 on merchandise purchased on account, and gave a $1,380, 30-day, 6% 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 6% on the maturity value. |
Required:
Record the transactions in a general journal. Assume 360 days in a year.
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