/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q24E Journalizing note receivable tra... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 8: Q24E (page 473)

Journalizing note receivable transactions

The following selected transactions occurred during 2018 and 2019 for Baltic Importers. The company ends its accounting year on September 30.

2018

Jul. 1

Loaned \(16,000 cash to Bud Shyne on a one-year, 8% note.

Sep. 6

Sold goods to Lawn Pro, receiving a 90-day, 6% note for \)11,000. Ignore Cost of Goods Sold.

30

Made a single entry to accrue interest revenue on both notes.

?

Collected the maturity value of the Lawn Pro note.

2019

Jul. 1

Collected the maturity value of the Shyne note.

Journalize all required entries. Make sure to determine the missing maturity date. Round to the nearest dollar

Short Answer

Expert verified

The amount of cash collected on the maturity is $17,280.

Step by step solution

01

Definition of accounts receivables

The accounts receivables mean the amount owed by the company to its debtors. The accounts receivable is a type of current asset for the company.

02

Journalizing entries

The maturity date is determined by counting the actual days from the date of issue. The date of Issues was Sep 6, and the Maturity date was 5th December.

Date

Particulars

Debit

Credit

July 1

Notes Receivables- Bud Shyne

$16,000

Cash

$16,000

(Sold goods on account)

September 6

Accounts Receivable鈥� Lawn Pro

$11,000

Sale Revenue

$11,000

(Sales of goods on account)

September 6

Note Receivable鈥� Lawn Pro

$11,000

Accounts Receivable 鈥� Lawn Pro

$11,000

(Note was issued against sale)

September 30

Interest Receivable

$364

Interest Revenue (16,000*8%*3/12)+(11,000*6%*24/360)

$364

(Accrued interest revenue)

December 5

Cash

$11,165

Notes Receivable-

$11,000

Interest Receivable(11,000*6%*24/360)

$44

Interest Revenue (11,000*6%*66/360)

$121

(Collected note receivable plus interest.)

2019

July 1

Cash

$17,280

Notes Receivable-

$16,000

Interest Receivable(16,000*8%*3/12)

$320

Interest Revenue(16,000*8%*9/12)

$960

(Collected note receivable plus interest.)

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

At September 30, 2018, the accounts of Green Terrace Medical Center (GTMC)

include the following:

Accounts Receivable \( 145,000

Allowance for Bad Debts (credit balance) 3,500

During the last quarter of 2018, GTMC completed the following selected transactions:

鈥� Sales on account, \)450,000. Ignore Cost of Goods Sold.

鈥� Collections on account, \(427,100

鈥� Wrote off accounts receivable as uncollectible: Regan, Co., \)1,400; Owen Reis, \(800;

and Patterson, Inc., \)700

鈥� Recorded bad debts expense based on the aging of accounts receivable, as follows:

Age of Accounts

1鈥�30 Days 31鈥�60

Days

61鈥�90

Days

Over 90

Days

Accounts Receivable \( 104,000 \) 39,000 \( 14,000 \) 8,000

Estimated percent uncollectible 0.3% 3% 30% 35%

Requirements

1. Open T-accounts for Accounts Receivable and Allowance for Bad Debts.

Journalize the transactions (omit explanations) and post to the two accounts.

2. Show how Green Terrace Medical Center should report net accounts receivable on

its December 31, 2018, balance sheet.

Recording credit sales and collections

Record the following transactions for Summer Consulting. Explanations are not required.

Apr. 15

Provided consulting services to Bob Jones and billed the customer \(1,500.

18

Provided consulting services to Samantha Cruise and billed the customer \)865.

25

Received \(750 cash from Jones.

28

Provided consulting services to Regan Taylor and billed the customer \)625.

28

Received \(865 cash from Cruise.

30

Received \)1,375 cash, \(750 from Jones and \)625 from Taylor

What does the accounts receivable turnover ratio measure, and how is it calculated?

Question:

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鈥檚 fiscal year ends on December 31.

Requirements

1. Journalize all entries for Team Bank related to the note for 2018 and 2019.

2. 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 the Team record for the dishonored note?

On August 1, Taylor Company lent $80,000 to L. King on a 90-day, 5% note.

12. Journalize for Taylor Company the lending of the money on August 1.

13. Journalize the collection of the principal and interest at maturity. Specify the date. Round interest to the nearest dollar.
See all solutions

Recommended explanations on Business Studies Textbooks

Insurance

Read Explanation

Organizational Communication

Read Explanation

Finance Literacy (Business Studies)

Read Explanation

Operational Management

Read Explanation

Sales in Business

Read Explanation

Business Development

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.