On June 3, 20X1, Alaska State Company received a $5,400, 45-day, 12 percent note from Samuel Adams, a customer whose account was past due. Alaska discounted the note on June 18, 20X1 at Georgia State Bank and Trust. Samuel Adams dishonored the note receivable discounted by Alaska State. Assume the bank deducted the maturity value of the dishonored note plus a $40 service charge from Alaska State's bank account on the due date of the note. Required: Prepare the entries in general journal form that Alaska State Company would make. (Use 360 days a year.) View transaction list
On June 3, 20X1, Alaska State Company received a $5,400, 45-day, 12 percent note from Samuel Adams, a customer whose account was past due. Alaska discounted the note on June 18, 20X1 at Georgia State Bank and Trust. Samuel Adams dishonored the note receivable discounted by Alaska State. Assume the bank deducted the maturity value of the dishonored note plus a $40 service charge from Alaska State's bank account on the due date of the note. Required: Prepare the entries in general journal form that Alaska State Company would make. (Use 360 days a year.) View transaction list
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On June 3, 20X1, Alaska State Company received a $5,400, 45-day, 12 percent note from Samuel Adams, a customer whose account
was past due. Alaska discounted the note on June 18, 20x1 at Georgia State Bank and Trust. Samuel Adams dishonored the note
receivable discounted by Alaska State. Assume the bank deducted the maturity value of the dishonored note plus a $40 service
charge from Alaska State's bank account on the due date of the note.
Required:
Prepare the entries in general journal form that Alaska State Company would make. (Use 360 days a year.)
View transaction list
Journal entry worksheet
<
1
Record entry for dishonor of Samuel Adams discounted note.
Note: Enter debits before credits.
Date
General Journal
July 18, 20X1 Notes receivable-Discounted
Record entry
Accounts receivable/Samuel Adams
Clear entry
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Debit
5,400
Credit
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