Weldon Corporation's fiscal year ends December 31. The following is a list of transactions involving 2024: March 17 Accounts receivable of $2,600 were written off as uncollectible. The company uses the allowance method. March 30 Loaned an officer of the company $33,000 and received a note requiring principal and interest at 7% to be paid on March 30, 2025. May 30 Discounted the $33,000 note at a local bank. The bank's discount rate is 8%. The note was discounted without recourse and the sale criteria are met. June 30 Sold merchandise to the Blankenship Company for $21,000. Terms of the sale are 4/10/30 Weldon uses the gross method to account for cash discounts. July 8 The Blankenship Company paid its account in full. August 31 Sold stock in a nonpublic company with a book value of $5,900 and accepted a $6,900 noninterest-bearing note with a discount rate of 8%. The $6,900 payment is due on February 28, 2025. The stock has no ready market value. December 31 Weldon estimates that the allowance for uncollectible accounts should have a balance in it at year-end equal to 4% of the gross accounts receivable balance of $680,000. The allowance had a balance of $21,000 at the start of 2024. Required: 1 & 2. Prepare journal entries for each of the above transactions and additional year-end adjusting entries indicated. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to nearest whole dollar. View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. 5 6 7 8 9 Loaned an officer of the company $33,000 and received a note requiring principal and interest at 7% to be paid on March 30, 2025. >
Weldon Corporation's fiscal year ends December 31. The following is a list of transactions involving 2024: March 17 Accounts receivable of $2,600 were written off as uncollectible. The company uses the allowance method. March 30 Loaned an officer of the company $33,000 and received a note requiring principal and interest at 7% to be paid on March 30, 2025. May 30 Discounted the $33,000 note at a local bank. The bank's discount rate is 8%. The note was discounted without recourse and the sale criteria are met. June 30 Sold merchandise to the Blankenship Company for $21,000. Terms of the sale are 4/10/30 Weldon uses the gross method to account for cash discounts. July 8 The Blankenship Company paid its account in full. August 31 Sold stock in a nonpublic company with a book value of $5,900 and accepted a $6,900 noninterest-bearing note with a discount rate of 8%. The $6,900 payment is due on February 28, 2025. The stock has no ready market value. December 31 Weldon estimates that the allowance for uncollectible accounts should have a balance in it at year-end equal to 4% of the gross accounts receivable balance of $680,000. The allowance had a balance of $21,000 at the start of 2024. Required: 1 & 2. Prepare journal entries for each of the above transactions and additional year-end adjusting entries indicated. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to nearest whole dollar. View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. 5 6 7 8 9 Loaned an officer of the company $33,000 and received a note requiring principal and interest at 7% to be paid on March 30, 2025. >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Weldon Corporation's fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during
2024:
March 17 Accounts receivable of $2,600 were written off as uncollectible. The company uses the allowance method.
March 30 Loaned an officer of the company $33,000 and received a note requiring principal and interest at 7% to be
paid on March 30, 2025.
May 30 Discounted the $33,000 note at a local bank. The bank's discount rate is 8 %. The note was discounted without
recourse and the sale criteria are met.
June 30 Sold merchandise to the Blankenship Company for $21,000. Terms of the sale are
4/10/30 Weldon uses the
gross method to account for cash discounts.
July 8 The Blankenship Company paid its account in full.
August 31 Sold stock in a nonpublic company with a book value of $5,900 and accepted a $6,900 noninterest-bearing note
with a discount rate of 8%. The $6,900 payment is due on February 28, 2025. The stock has no ready market
value.
December 31 Weldon estimates that the allowance for uncollectible accounts should have a balance in it at year-end equal
to 4% of the gross accounts receivable balance of $680,000. The allowance had a balance of $21,000 at the
start of 2024.
Required:
1 & 2. Prepare journal entries for each of the above transactions and additional year-end adjusting entries indicated.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round
intermediate calculations and round your final answers to nearest whole dollar.
View transaction list
Journal entry worksheet
1
2
3
4
Note: Enter debits before credits.
5
6
7
8
9
Loaned an officer of the company $33,000 and received a note requiring
principal and interest at 7% to be paid on March 30, 2025.
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