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These transactions took place for Kingbird Co. 2021 May 1 Received a $26,250, 12 months, 8% note in exchange for an outstanding accounts receivable from Mark Chamber. Dec. 31 Accrued interest revenue on the Chamber note. Dec. 31 Closed the interest revenue account. 2022 May 1 Received principal plus interest on the Chamber note. (No interest has been accrued since December 31, 2021.) Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

These transactions took place for Kingbird Co. 2021 May 1 Received a $26,250, 12 months, 8% note in exchange for an outstanding accounts receivable from Mark Chamber. Dec. 31 Accrued interest revenue on the Chamber note. Dec. 31 Closed the interest revenue account. 2022 May 1 Received principal plus interest on the Chamber note. (No interest has been accrued since December 31, 2021.) Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

FINANCIAL ACCOUNTING
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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These transactions took place for Kingbird Co. 2021 May 1 Received a $26,250, 12 months, 8% note in exchange for an outstanding accounts receivable from Mark Chamber. Dec. 31 Accrued interest revenue on the Chamber note. Closed the interest revenue account. Dec. 31 2022 May 1 Received principal plus interest on the Chamber note. (No interest has been accrued since December 31, 2021.) Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date May 1, 2021 Dec. 31, 2021 Dec. 31, 2021 Account Titles and Explanation Notes Receivable Accounts Receivable Interest Receivable Interest Revenue (To record accrued interest on note.) Interest Revenue Debit 26,250.00 1,400.00 1,400.00 Credit 26,250.00 1,400.00
Transcribed Image Text:These transactions took place for Kingbird Co. 2021 May 1 Received a $26,250, 12 months, 8% note in exchange for an outstanding accounts receivable from Mark Chamber. Dec. 31 Accrued interest revenue on the Chamber note. Closed the interest revenue account. Dec. 31 2022 May 1 Received principal plus interest on the Chamber note. (No interest has been accrued since December 31, 2021.) Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date May 1, 2021 Dec. 31, 2021 Dec. 31, 2021 Account Titles and Explanation Notes Receivable Accounts Receivable Interest Receivable Interest Revenue (To record accrued interest on note.) Interest Revenue Debit 26,250.00 1,400.00 1,400.00 Credit 26,250.00 1,400.00
Date May 1, 2021 Dec. 31, 2021 Dec. 31, 2021 May 1, 2022 V Account Titles and Explanation Notes Receivable Accounts Receivable Interest Receivable Interest Revenue (To record accrued interest on note.) Interest Revenue Income Summary (To close the interest revenue account.) Cash Interest Receivable Interest Revenue Notes Receivable Debit 26,250.00 1,400.00 1,400.00 Credit 26.250.00 1,400.00 1,400.00 1,400.00 26,250.00
Transcribed Image Text:Date May 1, 2021 Dec. 31, 2021 Dec. 31, 2021 May 1, 2022 V Account Titles and Explanation Notes Receivable Accounts Receivable Interest Receivable Interest Revenue (To record accrued interest on note.) Interest Revenue Income Summary (To close the interest revenue account.) Cash Interest Receivable Interest Revenue Notes Receivable Debit 26,250.00 1,400.00 1,400.00 Credit 26.250.00 1,400.00 1,400.00 1,400.00 26,250.00
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