Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customer's repayment on February 9, 2020, assuming the note nterest-bearing note with a present value of $26,598. The implicit interest rate on the note receivable was 9%. Assume a 360-day year. 1 2 3 4 5 6 7 DATE Dec. 11, 2019 Notes Receivable Sales Revenue Discount on Notes Receivable Dec. 31, 2019 Discount on Notes Receivable Interest Income Feb. 9,2020 Cash Notes Receivable GENERAL JOURNAL ACCOUNT TITLE POST. REF. DEBIT PAGE 12 CREDIT
Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customer's repayment on February 9, 2020, assuming the note nterest-bearing note with a present value of $26,598. The implicit interest rate on the note receivable was 9%. Assume a 360-day year. 1 2 3 4 5 6 7 DATE Dec. 11, 2019 Notes Receivable Sales Revenue Discount on Notes Receivable Dec. 31, 2019 Discount on Notes Receivable Interest Income Feb. 9,2020 Cash Notes Receivable GENERAL JOURNAL ACCOUNT TITLE POST. REF. DEBIT PAGE 12 CREDIT
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 17E: Interest-Bearing and Non-Interest-Bearing Notes On December 11, 2019, Hooper Inc. made a credit sale...
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Question
On December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a $27,000, 60-day note.
Required: | |||||
Prepare the
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CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hooper Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Check the image section for journals.
![Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customer's repayment on February 9, 2020, assuming an interest rate of 9% was assessed in
addition to the face value of the note.
1
2
3
4
5
6
7
8
DATE
Dec. 11, 2019
Dec. 31, 2019
Feb. 9, 2020
Notes Receivable
Sales Revenue
Interest Receivable
Interest Income
Interest Income
Interest Receivable
Cash
Notes Receivable
GENERAL JOURNAL
ACCOUNT TITLE
POST. REF.
DEBIT
PAGE 12
CREDIT](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84c1d705-8ee3-41d9-9d0b-559d1daa37b3%2F4636d99d-89a2-4b01-925f-cb1a1c4d44cc%2Fhhrbywi_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customer's repayment on February 9, 2020, assuming an interest rate of 9% was assessed in
addition to the face value of the note.
1
2
3
4
5
6
7
8
DATE
Dec. 11, 2019
Dec. 31, 2019
Feb. 9, 2020
Notes Receivable
Sales Revenue
Interest Receivable
Interest Income
Interest Income
Interest Receivable
Cash
Notes Receivable
GENERAL JOURNAL
ACCOUNT TITLE
POST. REF.
DEBIT
PAGE 12
CREDIT
![Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customer's repayment on February 9, 2020, assuming the note was issued as a $27,000 non-
interest-bearing note with a present value of $26,598. The implicit interest rate on the note receivable was 9%. Assume a 360-day year.
1
2
3
4
5
6
7
8
9
DATE
Dec. 11, 2019
Dec. 31, 2019
Feb. 9, 2020
Feb. 9, 2020
Notes Receivable
Sales Revenue
Discount on Notes Receivable
Discount on Notes Receivable
Interest Income
ACCOUNT TITLE
GENERAL JOURNAL
Cash
Notes Receivable
Discount on Notes Receivable
Interest Income
POST. REF.
DEBIT
PAGE 12
CREDIT](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84c1d705-8ee3-41d9-9d0b-559d1daa37b3%2F4636d99d-89a2-4b01-925f-cb1a1c4d44cc%2Fcubhmqj_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customer's repayment on February 9, 2020, assuming the note was issued as a $27,000 non-
interest-bearing note with a present value of $26,598. The implicit interest rate on the note receivable was 9%. Assume a 360-day year.
1
2
3
4
5
6
7
8
9
DATE
Dec. 11, 2019
Dec. 31, 2019
Feb. 9, 2020
Feb. 9, 2020
Notes Receivable
Sales Revenue
Discount on Notes Receivable
Discount on Notes Receivable
Interest Income
ACCOUNT TITLE
GENERAL JOURNAL
Cash
Notes Receivable
Discount on Notes Receivable
Interest Income
POST. REF.
DEBIT
PAGE 12
CREDIT
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