Trent Distributors has the following transactions related to notes receivable during the last two months of the year. Dec. 1 Loaned $16,000 cash to E. Kinder on a 1-year, 6% note. 16 Sold goods to J. Jones, receiving a $2,400, 60-day, 7% note. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Trent Distributors.

Trent Distributors has the following transactions related to notes receivable during the last two months of the year. Dec. 1 Loaned $16,000 cash to E. Kinder on a 1-year, 6% note. 16 Sold goods to J. Jones, receiving a $2,400, 60-day, 7% note. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Trent Distributors.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
Ace Distributors has the following transactions related to notes receivable during the last month of the year. Dec. 1 Loaned $15,000 cash to K. Hogan on a 1-year, 6% note. 16 Sold goods to F. Manning, receiving a $4,800, 60-day. 7% note. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Ace Distributors. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round intermediate calculations to 2 decimal places, eg. 52.75 and final answers to O decimal places e.g. 5,125.) Date Account Titles and Explanation (To record loan made to K. Hogan) (To record sale to F. Manning) (To record accrued interest) Debit Credit
Brown Distributors has the following transactions related to notes receivable during the last two months of the year. Dec. 1 Loaned $18,000 cash to K. Perry on a 1-year, 5% note. 16 Sold goods to L. Bryan, receiving a $4,800, 60-day, 7% note. 31 Accrued interest revenue on all notes receivable. D Journalize the transactions for Brown Distributors. Omit cost of goods sold entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit
The following selected transactions for notes receivable are for Accustart Limited. May 1 Received a six-month, 5%, $13,440 note on account from Blackstone Limited. Interest is due at maturity. June 30 Accrued interest on the Blackstone note on this date, which is Accustart’s year end. July 1 Lent $11,200 cash to an employee, Noreen Wong, issuing a three-month, 7% note. Interest is due at the beginning of each month, starting August 1. Aug. 1 Received the interest due from Ms. Wong. Sept. 1 Received the interest due from Ms. Wong. Oct. 1 Received payment in full for the employee note from Ms. Wong. Nov. 1 Wrote off the Blackstone note because Blackstone defaulted. Future payment is not expected. Record the above transactions for Accustart Limited. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…
The following selected transactions for notes receivable are for Marx Limited. May 1 Received a six-month, 5%, $15,120 note on account from Blackstone Limited. Interest is due at maturity. June 30 Accrued interest on the Blackstone note on this date, which is Marx's year end. July 1 Lent $13,200 cash to an employee, Noreen Wong, issuing a three-month, 7% note. Interest is due at the beginning of each month, starting August 1. Aug. 1 Received the interest due from Ms. Wong. Sept. 1 Received the interest due from Ms. Wong. Oct. 1 Received payment in full for the employee note from Ms. Wong. Nov. 1 Wrote off the Blackstone note because Blackstone defaulted. Future payment is not expected. Record the above transactions for Marx Limited. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually if no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in…
The following notes receivable transactions occurred for Harris Company during the last three months of the current year. (Assume all notes are dated the day the transaction occurred.) Oct. 9 Received a $5,000, 12%, 60-day note from K. Weedon, a customer, for merchandise originally purchased on account. 12 Received a $6,000, 10%, 90-day note from M. Black, a customer, for merchandise originally purchased on account. 15 Sold the Weedon note with recourse at the bank at 14%. The fair value of the recourse liability is estimated to be $1,230. Nov. 11 Sold the Black note with recourse at the bank at 15%. The fair value of the recourse liability is estimated to be $850. 16 Received an $8,000, 12%, 60-day note from B. Butcher, a customer, for merchandise originally purchased on account. 20 Received a $6,000, 11%, 120-day note from D. Goldman, a customer, for merchandise originally purchased on account. Dec. 1 Received a $9,000, 13%, 60-day note from S. Lambert, a…
Current Attempt in Progress Carla Vista Distributors has the following transactions related to notes receivable during the last month of the year. Dec. 1 Loaned $11,520 cash to J. Cash on a 1-year, 5% note. 16 Sold goods to W. Jennings, receiving a $9,600, 60-day, 6% note. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Carla Vista Distributors. (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. Use 360 days for calculation. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
Dynatech Supply Corp. has the following selected transactions for notes receivable. Nov. 1 Lent $141,100 cash to A. Bouchard on a one-year, 9% note. Sold goods to Wright Inc., receiving a two-month, 6%, $31,000 note. Interest is due at maturity. The goods cost $19,344. 1 Dec. Received a six-month, 6%, $34,080 note in exchange for an account from Aquilina Corporation. Interest is due at maturity. 15 Feb. 1 Collected the amount owing on the Wright note. 28 Accrued interest on all notes receivable at year end. Assume that interest is calculated to the nearest half month. 28 Analyzed each note and estimated that uncollectible notes at year end totalled $25,544. Record the above transactions for Dynatech Supply Corp. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to the nearest whole…
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