Sheffield Company had the following select transactions. Apr. 1, 2020 Accepted Goodwin Company’s 12-month, 14% note in settlement of a $29,000 account receivable. July 1, 2020 Loaned $31,000 cash to Thomas Slocombe on a 9-month, 12% note. Dec. 31, 2020 Accrued interest on all notes receivable. Apr. 1, 2021 Received principal plus interest on the Goodwin note. Apr. 1, 2021 Thomas Slocombe dishonored its note; Sheffield expects it will eventually collect.
Sheffield Company had the following select transactions. Apr. 1, 2020 Accepted Goodwin Company’s 12-month, 14% note in settlement of a $29,000 account receivable. July 1, 2020 Loaned $31,000 cash to Thomas Slocombe on a 9-month, 12% note. Dec. 31, 2020 Accrued interest on all notes receivable. Apr. 1, 2021 Received principal plus interest on the Goodwin note. Apr. 1, 2021 Thomas Slocombe dishonored its note; Sheffield expects it will eventually collect.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sheffield Company had the following select transactions.
| Apr. | 1, | 2020 | Accepted Goodwin Company’s 12-month, 14% note in settlement of a $29,000 |
|
| July | 1, | 2020 | Loaned $31,000 cash to Thomas Slocombe on a 9-month, 12% note. | |
| Dec. | 31, | 2020 | Accrued interest on all notes receivable. | |
| Apr. | 1, | 2021 | Received principal plus interest on the Goodwin note. | |
| Apr. | 1, | 2021 | Thomas Slocombe dishonored its note; Sheffield expects it will eventually collect. |
![### Journal Entry Template
**Instructions:**
Use this template to record detailed journal entries. Each entry should include the date, specific account titles, a description or explanation for the entry, and the respective amounts.
#### Template Structure:
- **Date**: The date of the transaction.
- **Account Titles and Explanation**: The specific accounts affected and a brief explanation of the transaction.
- **Debit**: Amount to be debited.
- **Credit**: Amount to be credited.
---
#### Journal Entry Table:
| **Date** | **Account Titles and Explanation** | **Debit** | **Credit** |
|----------|------------------------------------|-----------|------------|
| [Select Date] | | | |
| [Account Title] | | | |
| [Account Title] | | | |
| [Select Date] | | | |
| [Account Title] | | | |
| [Account Title] | | | |
| [Select Date] | | | |
| [Account Title] | (To record interest at 14%) | | |
| [Account Title] | | | |
| [Select Date] | | | |
| [Account Title] | (To record interest at 12%) | | |
| [Account Title] | | | |
| [Select Date] | | | |
| [Account Title] | (To record principal plus interest on the Goodwin note) | | |
| [Account Title] | | | |
---
**Example:**
1. **Recording Interest**:
- **14% Interest**:
- **Date**: Select the date
- **Debit**: Interest Expense
- **Credit**: Interest Payable
2. **Recording Principal Plus Interest**:
- **Goodwin Note**:
- **Date**: Select the date
- **Debit**: Notes Payable (Principal)
- **Credit**: Cash (Total amount, including interest)
This template provides a structured format for students to learn and practice how to record journal entries in accounting. The inclusion of placeholders for dates, account titles, explanations, debits, and credits ensures comprehensive documentation of financial transactions.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e7713e5-bc5d-45b6-9158-f2a077b22183%2F21984f7b-adce-4eeb-af33-58839f09727c%2Fg3r25v_processed.png&w=3840&q=75)
Transcribed Image Text:### Journal Entry Template
**Instructions:**
Use this template to record detailed journal entries. Each entry should include the date, specific account titles, a description or explanation for the entry, and the respective amounts.
#### Template Structure:
- **Date**: The date of the transaction.
- **Account Titles and Explanation**: The specific accounts affected and a brief explanation of the transaction.
- **Debit**: Amount to be debited.
- **Credit**: Amount to be credited.
---
#### Journal Entry Table:
| **Date** | **Account Titles and Explanation** | **Debit** | **Credit** |
|----------|------------------------------------|-----------|------------|
| [Select Date] | | | |
| [Account Title] | | | |
| [Account Title] | | | |
| [Select Date] | | | |
| [Account Title] | | | |
| [Account Title] | | | |
| [Select Date] | | | |
| [Account Title] | (To record interest at 14%) | | |
| [Account Title] | | | |
| [Select Date] | | | |
| [Account Title] | (To record interest at 12%) | | |
| [Account Title] | | | |
| [Select Date] | | | |
| [Account Title] | (To record principal plus interest on the Goodwin note) | | |
| [Account Title] | | | |
---
**Example:**
1. **Recording Interest**:
- **14% Interest**:
- **Date**: Select the date
- **Debit**: Interest Expense
- **Credit**: Interest Payable
2. **Recording Principal Plus Interest**:
- **Goodwin Note**:
- **Date**: Select the date
- **Debit**: Notes Payable (Principal)
- **Credit**: Cash (Total amount, including interest)
This template provides a structured format for students to learn and practice how to record journal entries in accounting. The inclusion of placeholders for dates, account titles, explanations, debits, and credits ensures comprehensive documentation of financial transactions.
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