Chapter 9, Problem P9.32APGA

Accounting for notes receivable, dishonored notes, and accrued interest revenue Consider the following transactions for Jo Jo Music.

2016

Dec. 6 Received a $9,000, 90-day, 12% note in settlement of an overdue accounts receivable from Concord Sounds.

31 Made an adjusting entry to accrue interest on the Concord Sounds note.

31 Made a closing entry for interest revenue.

2017

Mar. 6 Collected the maturity value of the Concord Sounds note.

Jun. 30 Loaned $11,000 cash to Main Street Music, receiving a six-month, 12% note.

Oct. 2 Received a $9,000, 60-day, 12% note for a sale to Salem Sounds. Ignore Cost of Goods Sold.

Dec. 1 Salem Sounds dishonored its note at maturity.

1 Wrote off the receivable associated with Salem Sounds. (Use the allowance method.)

30 Collected the maturity value of the Main Street Music note.

Journalize all transactions for Jo Jo Music. Round all amounts to the nearest dollar. (For notes stated in days, use a 360-day year.)