P8-33A Accounting for notes receivable, dishonored notes, and accrued interest revenue Consider the following transactions for CC Publishing. 2018 Dec. 6 Received a $18,000, 90-day, 6% note in settlement of an overdue accounts receivable from Go Go Publishing. 31 Made an adjusting entry to accrue interest on the Go Go Publishing note. 31 Made a closing entry for interest revenue. 2019 Mar. 6 Collected the maturity value of the Go Go Publishing note. Jun. 30 Loaned $11,000 cash to Lincoln Music, receiving a six-month, 20% note. Oct. 2 Received a $2,400, 60-day, 20% note for a sale to Tusk Music. Ignore Cost of Goods Sold. Dec. 1 Tusk Music dishonored its note at maturity. 1 Wrote off the receivable associated with Tusk Music. (Use the allowance method.) 30 Collected the maturity value of the Lincoln Music note. Journalize all transactions for CC Publishing. Round all amounts to the nearest dollar.
P8-33A Accounting for notes receivable, dishonored notes, and accrued interest revenue Consider the following transactions for CC Publishing. 2018 Dec. 6 Received a $18,000, 90-day, 6% note in settlement of an overdue accounts receivable from Go Go Publishing. 31 Made an adjusting entry to accrue interest on the Go Go Publishing note. 31 Made a closing entry for interest revenue. 2019 Mar. 6 Collected the maturity value of the Go Go Publishing note. Jun. 30 Loaned $11,000 cash to Lincoln Music, receiving a six-month, 20% note. Oct. 2 Received a $2,400, 60-day, 20% note for a sale to Tusk Music. Ignore Cost of Goods Sold. Dec. 1 Tusk Music dishonored its note at maturity. 1 Wrote off the receivable associated with Tusk Music. (Use the allowance method.) 30 Collected the maturity value of the Lincoln Music note. Journalize all transactions for CC Publishing. Round all amounts to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question 33.
Transcribed Image Text:chapter 8
Learning Objective 4
P8-33A Accounting for notes receivable, dishonored notes, and accrued
interest revenue
Consider the following transactions for CC Publishing.
E 31, 2018 Income Summary
CR $74
2018
Dec. 6 Received a $18,000, 90-day, 6% note in settlement of an overdue accounts
receivable from Go Go Publishing.
31 Made an adjusting entry to accrue interest on the Go Go Publishing note.
31 Made a closing entry for interest revenue.
2019
Mar. 6 Collected the maturity value of the Go Go Publishing note.
Jun. 30 Loaned $11,000 cash to Lincoln Music, receiving a six-month, 20% note.
Oct. 2 Received a $2,400, 60-day, 20% note for a sale to Tusk Music. Ignore Cost OT
Goods Sold.
Dec. 1 Tusk Music dishonored its note at maturity.
Wrote off the receivable associated with Tusk Music. (Use the allowance method.)
1.
30 Collected the maturity value of the Lincoln Music note.
Journalize all transactions for CC Publishing, Round all amounts to the nearest dollar.
arning Objective 5
P8-34A Using ratio data to evaluate a company's financial position
The comparative financial statements of Norfolk Cosmetic Supply for 2018, 2017, and
2016 include the data shown here:
test ratio (2018) 0.88
2018
2017
2016
Balance sheet-partial
Current Assets:
Cash
$ 70,000
Short-term investments
000'0 $..0000'09 $
000'0
000'0
Accounts Receivable, Net
240,000
000'087
260,000
Merchandise Inventory
355,000
310,000
Prepaid Expenses
000
835,000
000'0
Total Current Assets
Total Current Liabilities
000
000
Income statement-partial
Net Sales (all on account)
5,890,000
5,130,000
4,210,000
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