Horngren's Accounting
11th Edition
ISBN: 9780133851151
Author: MILLER-NOBLES, Tracie L., Mattison, Brenda., Matsumura, Ella Mae, Horngren, Charles T.
Publisher: Pearson,
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Chapter 9, Problem S9.12SE
Recording a dishonored note receivable
Midway Company has a six-month, $24,000, 3% note receivable from L. Summer that was signed on June 1,2016. Summers defaults on the loan on December 1
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Recording a dishonored note receivable
McKale Corporation has a three-month, $18, 000, 9% note receivable from L. Peters that was signed on June 1,2 018. Peters defaults on the loan on September 1.
Journalize the entry for McKale to record the default of the loan.
Journalizing note receivable transactions including a dishonored note
On September 30, 2018, Team Bank loaned $94,000 to Kendall Warner on a one-year, 6% note. Team’s fiscal year ends on December 31.
Requirements
Journalize all entries for Team Bank related to the note for 2018 and 2019.
Which party has a
a. note receivable?
b. note payable?
c. interest revenue?
d. interest expense?
3. Suppose that Kendall Warner defaulted on the note. What entry would Team record for the dishonored note?
1
Chapter 9 Solutions
Horngren's Accounting
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