The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing: 20Y7 Dec. 7. Received from Unitarian Clothing and Bags Co., on account, a $66,000, 60-day, 7% note dated December 7. Dec. 31. Recorded an adjusting entry for accrued interest on the note of December 7. Dec. 31. Recorded the closing entry for interest revenue. 20Y8 Feb. 5. Received payment of note and interest from Unitarian Clothing & Bags Co. Journalize the entries to record the transactions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank. Assume February has 28 days in 2018 If required, round the interest to the nearest cent. 20Y7, Dec. 7 Notes Receivable Accounts Receivable-Unitarian Clothing and Bags Co. Dec. 31 Interest Receivable Interest Revenue Dec. 31 Interest Revenue Retained Earnings 20Y8, Feb. 5 Cash Notes Receivable Interest Receivable Interest Revenue
The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing: 20Y7 Dec. 7. Received from Unitarian Clothing and Bags Co., on account, a $66,000, 60-day, 7% note dated December 7. Dec. 31. Recorded an adjusting entry for accrued interest on the note of December 7. Dec. 31. Recorded the closing entry for interest revenue. 20Y8 Feb. 5. Received payment of note and interest from Unitarian Clothing & Bags Co. Journalize the entries to record the transactions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank. Assume February has 28 days in 2018 If required, round the interest to the nearest cent. 20Y7, Dec. 7 Notes Receivable Accounts Receivable-Unitarian Clothing and Bags Co. Dec. 31 Interest Receivable Interest Revenue Dec. 31 Interest Revenue Retained Earnings 20Y8, Feb. 5 Cash Notes Receivable Interest Receivable Interest Revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Entries for Notes Receivable, Including Year-End Entries
The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing:
| 20Y7 | |
| Dec. 7. | Received from Unitarian Clothing and Bags Co., on account, a $66,000, 60-day, 7% note dated December 7. |
| Dec. 31. | Recorded an |
| Dec. 31. | Recorded the closing entry for interest revenue. |
| 20Y8 | |
| Feb. 5. | Received payment of note and interest from Unitarian Clothing & Bags Co. |
Journalize the entries to record the transactions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank. Assume February has 28 days in 2018
If required, round the interest to the nearest cent.
| 20Y7, Dec. 7 | Notes Receivable |
| Dec. 31 | Interest Receivable |
| Interest Revenue | |
| Dec. 31 | Interest Revenue |
| 20Y8, Feb. 5 | Cash |
| Notes Receivable | |
| Interest Receivable | |
| Interest Revenue |
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