Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter 5, Problem 5.22AE
LO 6
(Learning Objective 6: Apply GAAP for notes receivable) Record the following note receivable transactions in the journal of Mediterranean Services. How much interest revenue did Mediterranean earn this year? Use a 365-day year for interest computations, and round interest amounts to the nearest dollar. Mediterranean Services has a December 31 fiscal year-end.
| Oct 1 | Loaned $21,000 cash to Brandy Shields on a one-year 10% note. |
| Dec 6 | Performed service for Lawn Pro, receiving a 90-day, 9% note for $5,000. |
| 16 | Received a $4,000, six month, 11% note on account from Peabody Company. |
| 31 | Accrued interest revenue for the year. |
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Chapter 5 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
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