Record journal entries for the following transactions of Telesco Enterprises. Jan. 1, 2018 Issued a $330,700 note to customer Abe Willis as terms of a merchandise sale. The merchandise’s cost to Telesco is $126,900. Note contract terms included a 36-month maturity date, and a 4% annual interest rate. Dec. 31, 2018 Telesco records interest accumulated for 2018. Dec. 31, 2019 Telesco records interest accumulated for 2019. Dec. 31, 2020 Abe Willis honors the note and pays in full with cash. If an amount box does not require an entry, leave it blank. Jan. 1, 2018 Notes Receivable: Willis Notes Receivable: Willis Sales Revenue Sales Revenue To record sale in exchange for Notes Receivable: Willis, 36-month maturity, 4% interest rate Jan. 1, 2018 Cost of Goods Sold Cost of Goods Sold Merchandise Inventory Merchandise Inventory To record the cost of sale Dec. 31, 2018 Interest Receivable: Willis Interest Receivable: Willis Interest Revenue Interest Revenue To record interest accumulated in 2018 Dec. 31, 2019 Interest Receivable: Willis Interest Receivable: Willis Interest Revenue Interest Revenue To record interest accumulated in 2019 Dec. 31, 2020 Cash Cash Notes Receivable: Willis Notes Receivable: Willis Interest Receivable: Willis Interest Receivable: Willis Interest Revenue Interest Revenue To record collection of

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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Record journal entries for the following transactions of Telesco Enterprises.

Jan. 1, 2018	Issued a $330,700 note to customer Abe Willis as terms of a merchandise sale. The merchandise’s cost to Telesco is $126,900. Note contract terms included a 36-month maturity date, and a 4% annual interest rate.
Dec. 31, 2018	Telesco records interest accumulated for 2018.
Dec. 31, 2019	Telesco records interest accumulated for 2019.
Dec. 31, 2020	Abe Willis honors the note and pays in full with cash.

If an amount box does not require an entry, leave it blank.

Jan. 1, 2018		Notes Receivable: Willis	Notes Receivable: Willis
		Sales Revenue	Sales Revenue
	To record sale in exchange for Notes Receivable: Willis, 36-month maturity, 4% interest rate
Jan. 1, 2018		Cost of Goods Sold	Cost of Goods Sold
		Merchandise Inventory	Merchandise Inventory
	To record the cost of sale
Dec. 31, 2018		Interest Receivable: Willis	Interest Receivable: Willis
		Interest Revenue	Interest Revenue
	To record interest accumulated in 2018
Dec. 31, 2019		Interest Receivable: Willis	Interest Receivable: Willis
		Interest Revenue	Interest Revenue
	To record interest accumulated in 2019
Dec. 31, 2020		Cash	Cash
		Notes Receivable: Willis	Notes Receivable: Willis
		Interest Receivable: Willis	Interest Receivable: Willis
		Interest Revenue	Interest Revenue
	To record collection of principal and accumulated interest

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