June 23 Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on account. Sept. 21 The note is dishonored by Radon Express Co. Oct. 21 Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Radon Express Co. on September 21.
June 23 Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on account. Sept. 21 The note is dishonored by Radon Express Co. Oct. 21 Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Radon Express Co. on September 21.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Entries for Receipt and Dishonor of Note Receivable
Journalize the following transactions of Trapper Jon’s Productions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank.
| June 23 | Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on account. |
| Sept. 21 | The note is dishonored by Radon Express Co. |
| Oct. 21 | Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Radon Express Co. on September 21. |
| June 23 | Notes Receivable | ||
| Sept. 21 | Accounts Receivable-Radon Express Co. | ||
| Notes Receivable | |||
| Interest Revenue | |||
| Oct. 21 | Cash | ||
| Accounts Receivable-Radon Express Co. | |||
| Interest Revenue |
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