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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Do not give answer in image formate
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
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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