General Journal entry for Accounting class?

I have a problem entering a few transactions into the General Journal for my Accounting class; I keep second guessing my answers.

June 1 after much thought, Natalie sells a mixer to Curtis on credit, terms

N/30, for $1,125 (cost of mixer $620).

June 30 Natalie receives and reconciles her bank statement. She makes sure

That the bank has correctly processed the monthly $75 charge for the rental of the credit card equipment and the 3% fee on the credit card transactions.

June 30 Curtis calls Natalie. He is unable to pay the amount outstanding

For another month, so he signs a one-month, 8% note receivable.

July31 Natalie reconciles her bank statement and makes sure the bank has

Recorded the correct amounts for the rental of the credit card equipment

And the credit card sales.

July 31 Curtis calls Natalie. He cannot pay today but hopes to have a check for

Her at the end of the week. Natalie prepares the appropriate journal

Entry.

Aug. 10 Curtis calls again and promises to pay at the end of August, including

Interest for 2 months.

Aug 31 Natalie receives a check from Curtis in payment of his balance plus

Interest outstanding

This is what I have come up with

June1 D: Accounts Receivable- Curtis Lesperance 1,125

C: Sales 1,125

June 30 Do I need record that she reconciles her bank statement?

June 30 D: Cash 1,125

C: Notes Receivable 1,125

C: Interest Revenue 90

July 31 Do I need record that she reconciles her bank statement?

July 31 not sure what to do for this one

Aug 10 not sure what to do for this one

Aug 31 D: Cash 1,305

C: Notes Receivable 1,125

C: Interest Receivable 180

1 Answer

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  • Sandy
    Lv 7
    1 decade ago
    Favorite Answer

    June 1 after much thought, Natalie sells a mixer to Curtis on credit, terms

    N/30, for $1,125 (cost of mixer $620)

    Dr AR $1,125

    Cr Sales$1,125

    Dr COGS $620

    Cr Merchandise inventory $620

    June 30 Natalie receives and reconciles her bank statement. She makes sure

    That the bank has correctly processed the monthly $75 charge for the rental of the credit card equipment and the 3% fee on the credit card transactions.

    Dr credit card finance charges $75

    Dr Cash $75

    June 30 Curtis calls Natalie. He is unable to pay the amount outstanding

    For another month, so he signs a one-month, 8% note receivable.

    Dr Notes receivable $1,125

    Cr AR $1,125

    July31 Natalie reconciles her bank statement and makes sure the bank has

    Recorded the correct amounts for the rental of the credit card equipment

    And the credit card sales.

    No figures given, so can't help you here.

    July 31 Curtis calls Natalie. He cannot pay today but hopes to have a check for

    Her at the end of the week. Natalie prepares the appropriate journal Entry.

    Dr AR $1,132.50

    Cr Notes receivable $1,125

    Cr Interest revenue $7.50 ($1,125 x 8% x 1/12)

    Assuming Natalie believes that this won't be a bad debt.

    Aug. 10 Curtis calls again and promises to pay at the end of August, including Interest for 2 months.

    No entry required assuming Natalie still thinks this won't be a bad debt.

    Aug 31 Natalie receives a check from Curtis in payment of his balance plus Interest outstanding

    Dr Cash $1,140

    Cr AR $1,132.50

    Cr Interest revenue $7.50

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