Teal Mountain Company had the following select transactions. Apr. 1,2025 Accepted Goodwin Company's 12-month, 8% note in settlement of a $39,000 account receivable July 1.2025 Loaned $19,000 cash to Thomas Slocombe on a 9-month, 12% note Dec 31, 2025 Accrued interest on all notes receivable Apr. 1,2026 Received principal plus interest on the Goodwin note Apr. 1,2026 Thomas Slocombe dishonored its note: Teal Mountain expects it will eventually collect Prepare journal entries to record the transactions. Teal Mountain prepares adjusting entries once a year on December 31. (List all debit entries before credit entries. 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. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)
Teal Mountain Company had the following select transactions. Apr. 1,2025 Accepted Goodwin Company's 12-month, 8% note in settlement of a $39,000 account receivable July 1.2025 Loaned $19,000 cash to Thomas Slocombe on a 9-month, 12% note Dec 31, 2025 Accrued interest on all notes receivable Apr. 1,2026 Received principal plus interest on the Goodwin note Apr. 1,2026 Thomas Slocombe dishonored its note: Teal Mountain expects it will eventually collect Prepare journal entries to record the transactions. Teal Mountain prepares adjusting entries once a year on December 31. (List all debit entries before credit entries. 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. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Teal Mountain Company had the following select transactions.
Apr.
1,2025
Accepted Goodwin Company's 12-month, 8% note in settlement of a $39,000 account receivable
July
1,2025
Loaned $19,000 cash to Thomas Slocombe on a 9-month, 12% note
Dec 31, 2025
Accrued interest on all notes receivable
Apr.
Apr. 1,2026
1,2026
Received principal plus interest on the Goodwin note.
Thomas Slocombe dishonored its note: Teal Mountain expects it will eventually collect
Prepare journal entries to record the transactions. Teal Mountain prepares adjusting entries once a year on December 31. (List all debit
entries before credit entries. 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. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date
4/1/25
Account Titles and Explanation
Notes Receivable
Accounts Receivable
7/1/25
Notes Receivable
Cash
12/31/25
Interest Receivable
Interest Revenue
12/31/25
(To record interest accrued on Goodwin note)
Interest Receivable
4/1/26
4/1/26
Interest Revenue
(To record interest accrued on Thomas note)
Cash
Notes Receivable
Interest Receivable
Interest Revenue
(To record collection of Goodwin note and interest)
Accounts Receivable
Notes Receivable
Interest Receivable
Interest Revenue
(To record the dishonor of Thomas note)
Debit
39000
19000
2340
2280
42120
Credit
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