Explanation Note Receivable: Note receivable refers to a written promise by the debtor for the amounts to be received within a stipulated period of 60-90 days or longer time. This written promise is issued by a debtor or, a borrower to the lender or, creditor. Notes receivable is an asset of a business. a. Prepare journal entry in the books of Corporation N to record the promissory note received against money lendon January 1. Date Account Title and Explanation Debit ($) Credit ($) January 1 Notes receivable 20,000 Cash 20,000 ( To record the acceptance of the note receivable) Table (1) Note Receivable is an asset account, and acceptance of note has increased the value of the asset, so debit it. Cash is an asset account, and it has decreased the value of the asset, so credit it. b. Prepare journal entry in the books of Corporation N to collection of interest on maturity date. Date Account Title and Explanation Debit ($) Credit ($) June 30 Cash 700 Interest Revenue 700 ( To record accrued interest revenue) Table (2) Working Notes: Calculate the amount of interest revenue earned and received on note, at maturity date...

6th Edition

ISBN: 9781259864230

Author: PHILLIPS, Fred, Libby, Robert, Patricia A.

Publisher: Mcgraw-hill Education,

See similar textbooks

Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangi…

Question

Chapter 8, Problem 11ME

To determine

To prepare: The journal entries to record the transactions of Corporation N.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 8, Problem 10ME

Chapter 8, Problem 12ME

Students have asked these similar questions

Solve Accounting problems

The July 1 work-in-process inventory consisted of 5,200 pounds with $16,500 in materials cost and $14,700 in conversion cost. The July 1 work-in-process inventory was 100% complete with respect to materials and 70% complete with respect to conversion. During July, 40,300 pounds were started into production. The July 31 work-in-process inventory consisted of 9,200 pounds, which were 100% complete with respect to materials and 60% complete with respect to conversion. Compute the equivalent units of production for conversion.

solve this question accurat

Chapter 8 Solutions

Fundamentals Of Financial Accounting

Ch. 8 - What are the advantages and disadvantages of...Ch. 8 - Prob. 2Q Ch. 8 - Which basic accounting principles does the...Ch. 8 - Using the allowance method, is Bad Debt Expense...Ch. 8 - What is the effect of the write-off of...Ch. 8 - How does the use of calculated estimates differ...Ch. 8 - A local phone company had a customer who rang up...Ch. 8 - What is the primary difference between accounts...Ch. 8 - What are the three components of the interest...Ch. 8 - As of May 1, 2016, Krispy Kreme Doughnuts had...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

The journal entries to record the transactions of Corporation N.

Solution Summary: The author explains that note receivable refers to a written promise by the debtor to the lender or, creditor.

Concept explainers

To prepare: The journal entries to record the transactions of Corporation N.

Want to see the full answer?

Chapter 8 Solutions