The following notes receivable transactions occurred for Harris Company during the last three months of the Current year. (Assume all notes are dated the day the transaction occurred.) 1. Prepare the journal entries to record the preceding note transactions and the necessary adjusting entries on December 31. (Assume that Harris does not normally sell its notes and uses a 360-day year for the purpose of computing interest. Round all calculations to the nearest penny.) 2. Show how Harris' notes receivable would be disclosed on the December 31 balance sheet. (Assume these are the only note transactions encouutered by Harris during the year.) Oct. 912Received a $5,000, 12%, 60-day note from K. Weedon, a customer.Received a $6,000, 10%, 90-day note from M. Black, a customer.Sold the Weedon note with recourse at the bank at 14%. The fair value of the recourse liability is esti-mated to be $1,23o.15(continued)Copyright 2000 Cengage Leening. All Rights Reserved. May not be copiod, scanned, or duplicated, in whole or in part. Duc to clectroric rights, some thind party content may he suppressed from the eBook andfer Chapteris).ditorial review has deemed that any suppessed content does not materially affect the overall learning experience. Cengage Leaming reserves the right to remove additional contert at any time if subsequent rights restrictions require it.Chapter 6 Cash and ReceivablesSold the Black note with recourse at the bank at 15%. The fair value of the recourse liability is estimatedto be $850.Received an $8,000, 12%, 60-day note from B. Butcher, a customer.Received a $6,000, 11%, 120-day note from D. Goldman, a customer.Received a $9,000, 13%, 60-day note from S. Lambert, a customer.Received notice that the Weedon note was paid at maturity.Sold the Goldman note without recourse at the bank at 13%.Nov. 111620Dec. 110

Answered: Oct. 9 12 Received a $5,000, 12%,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following notes receivable transactions occurred for Harris Company during the last three months of the Current year. (Assume all notes are dated the day the transaction occurred.) 1. Prepare the journal entries to record the preceding note transactions and the necessary adjusting entries on December 31. (Assume that Harris does not normally sell its notes and uses a 360-day year for the purpose of computing interest. Round all calculations to the nearest penny.) 2. Show how Harris' notes receivable would be disclosed on the December 31 balance sheet. (Assume these are the only note transactions encouutered by Harris during the year.)

Oct. 9
12
Received a $5,000, 12%, 60-day note from K. Weedon, a customer.
Received a $6,000, 10%, 90-day note from M. Black, a customer.
Sold the Weedon note with recourse at the bank at 14%. The fair value of the recourse liability is esti-
mated to be $1,23o.
15
(continued)
Copyright 2000 Cengage Leening. All Rights Reserved. May not be copiod, scanned, or duplicated, in whole or in part. Duc to clectroric rights, some thind party content may he suppressed from the eBook andfer Chapteris).
ditorial review has deemed that any suppessed content does not materially affect the overall learning experience. Cengage Leaming reserves the right to remove additional contert at any time if subsequent rights restrictions require it.
Chapter 6 Cash and Receivables
Sold the Black note with recourse at the bank at 15%. The fair value of the recourse liability is estimated
to be $850.
Received an $8,000, 12%, 60-day note from B. Butcher, a customer.
Received a $6,000, 11%, 120-day note from D. Goldman, a customer.
Received a $9,000, 13%, 60-day note from S. Lambert, a customer.
Received notice that the Weedon note was paid at maturity.
Sold the Goldman note without recourse at the bank at 13%.
Nov. 11
16
20
Dec. 1
10

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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