Problem 5-8A (Algo) Record long-term notes receivable and interest revenue (LO5-7)On December 1, 2024, Liang Chemical provides services to a customer for $78,000. In payment for the services, the customer signs athree-year, 12% note. The face amount is due at the end of the third year, while annual interest is due each December 1.Required:1. Record the acceptance of the note on December 1, 2024.2. Record the adjusting entry for interest revenue on December 31 for 2024, 2025, and 2026, and the collection of annual interest onDecember 1, 2025 and 20263. Record the cash collection on December 1, 2027.Prepare the journal entries for the above transactions. (If no entry is required for a particular transaction/event, select "No JournalEntry Required" in the first account field.)View transaction listJournal entry worksheet2Record the acceptance of the note.Note: Enter debits before credits.DateDecember 01, 2024Record entryView transaction list4DateDecember 01, 20265General JournalJournal entry worksheet< 1 2Record entryClear entry3Note: Enter debits before credits.475Debit6Record the receipt of annual interest as of December 1, 2026.Clear entryCreditView general journalGeneral Journal7DebitCreditView general journal>View transaction listJournal entry worksheet<12DateNote: Enter debits before credits.December 31, 2024Record entryRecord the adjusting entry for interest as of December 31, 2024.View transaction list34Note: Enter debits before credits.DateDecember 31, 2026Record entry5Journal entry worksheet< 1 2 3 4General JournalClear entry6576Clear entryRecord the adjusting entry for interest as of December 31, 2026.General Journal7Debit CreditView general journalDebitCreditView transaction listView general journalJournal entry worksheet<12Note: Enter debits before credits.DateDecember 01, 20254Record entry5Record the receipt of annual interest as of December 1, 2025.6General JournalClear entryView transaction list7Record entryJournal entry worksheet< 1 23Record the cash collection.Note: Enter debits before credits.DateDecember 01, 2027Debit4View general journalCredit5>Clear entry6General JournalView transaction list7Journal entry worksheet<23Note: Enter debits before credits.DateDecember 31, 2025Record the adjusting entry for interest as of December 31, 2025.Record entry5DebitGeneral JournalClear entryCredit7View general journalDebit CreditView general journal>

Notes receivable are defined as the instruments in which a written promise is made to disburse a…

Problem 5-8A (Algo) Record long-term notes receivable and interest revenue (LOS-7) On December 1, 2024, Liang Chemical provides services to a customer for $78,000. In payment for the services, the customer signs three-year 12% note. The face amount is due at the end of the third year while annual interest is due eachDecember 1 Required: 1. Record the acceptance of the note on December 1, 2024 2. Record the adjusting entry for interest revenue on December 31 for 2024 2025, and 2026, and the collection of annual interest on December 1, 2025 and 2026. Record the cash collection on December 1, 2027 Prepare the journal entries for the above transactions. Of no entry is required for a particular transaction/event, select "No Journal Entry Required in the first accounted) Journal entry worksheet Record the acceptance of the note Date Dec 1, 2004 View transaction list 5 6 General Journal Journal entry worksheet Date December 01, 2026 Clear entry Record entry Note: Enter debits before credits 5 Record the receipt of annual interest as of December 1, 2026. Debit Credit View alunal Clear entry 6 7 General Journal Debit Credit View general Journal > View transaction t Journal entry worksheet Record the adjusting entry for interest as of December 31, 2024. Note: Enter debits before credits. Date December 31, 2004 View transaction list 3 Journal entry worksheet Note: Enter debits before credits. Date December 31, 2026 General Journal Record entry Record the adjusting entry for interest as of December 31, 2026. 6 7 General Journal Clear entry Debit Credit Debit Credit View general journal Journal entry worksheet < Record the receipt of annual interest as of December 1, 2025. Needs before credits Date December 01, 2005 > Record entry General Journal View transaction list < 7 Journal entry worksheet Record the cash collection. Note: Enter debits before credits. Date December 01, 2027 Record entry Debit Credit View general al 6 General Journal Clear entry View transaction Bat Journal entry worksheet. < 7 3 Dute December 31, 2025 Record the adjusting entry for interest as of December 31, 2025. 6 7 General Journal Debit Credit View general journal > Debit Credit >