Splish Brothers Company had the following select transactions. Apr. 1, 2022 Accepted Goodwin Company’s 12-month, 6% note in settlement of a $41,000 account receivable. July 1, 2022 Loaned $22,000 cash to Thomas Slocombe on a 9-month, 11% note. Dec. 31, 2022 Accrued interest on all notes receivable. Apr. 1, 2023 Received principal plus interest on the Goodwin note. Apr. 1, 2023 Thomas Slocombe dishonored its note; Splish Brothers expects it will eventually collect. Prepare journal entries to record the transactions. Splish Brothers prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Splish Brothers Company had the following select transactions. Apr. 1, 2022 Accepted Goodwin Company’s 12-month, 6% note in settlement of a $41,000 account receivable. July 1, 2022 Loaned $22,000 cash to Thomas Slocombe on a 9-month, 11% note. Dec. 31, 2022 Accrued interest on all notes receivable. Apr. 1, 2023 Received principal plus interest on the Goodwin note. Apr. 1, 2023 Thomas Slocombe dishonored its note; Splish Brothers expects it will eventually collect. Prepare journal entries to record the transactions. Splish Brothers prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Splish Brothers Company had the following select transactions.
| Apr. | 1, 2022 | Accepted Goodwin Company’s 12-month, 6% note in settlement of a $41,000 account receivable. | |
| July | 1, 2022 | Loaned $22,000 cash to Thomas Slocombe on a 9-month, 11% note. | |
| Dec. | 31, 2022 | Accrued interest on all notes receivable. | |
| Apr. | 1, 2023 | Received principal plus interest on the Goodwin note. | |
| Apr. | 1, 2023 | Thomas Slocombe dishonored its note; Splish Brothers expects it will eventually collect. |
Prepare
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Date
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Account Titles and Explanation
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Debit
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Credit
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4/1/227/1/2212/31/224/1/23
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