Help With Accounting HW ASAP!?

Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2014. The company does not make entries to accrue interest except at December 31.

Nov. 1 Loaned $30,000 cash to Manny Lopez on a 12-month, 10% note.

Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $6,750, 90-day, 8% note.

16 Received a $4,000, 180 day, 9% note in exchange for Joe Fernetti’s outstanding accounts receivable.

31 Accrued interest revenue on all notes receivable.

Journalize..

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  • Sandy
    Lv 7
    6 years ago
    Favorite Answer

    Nov. 1 Loaned $30,000 cash to Manny Lopez on a 12-month, 10% note.

    Dr Notes receivable $30,000

    Cr Cash $30,000

    Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $6,750, 90-day, 8% note.

    Dr Notes receivable $6,750

    Cr Sales $6,750

    16 Received a $4,000, 180 day, 9% note in exchange for Joe Fernetti’s outstanding accounts receivable.

    Dr Notes receivable $4,000

    Cr Accounts $4,000

    31 Accrued interest revenue on all notes receivable.

    Dr Interest receivable 545

    Cr Interest revenue 545

    Calculation of interest receivable:

    Lopez note: $30,000 x 10% x 2/12 = $500

    Kremer note: $6,750 x 8% x 20/360 = $30 (using a 360-day year; 20 days' interest)

    Fernetti note: $4,000 x 9% x 15/360 = $15 (using a 360-day year; 15 days' interest)

    Total $545

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  • 4 years ago

    Received a $9,000, 12 months, 10% note in exchange for Mark Chamber’s outstanding accounts receivable.

    Dec. 31 Accrued interest on the Chamber note.

    Dec. 31 Closed the interest revenue account.

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  • Anonymous
    4 years ago

    Nov 1. Loaned 13500 cash to Manny Lopez on 12 month, 12% note. Record the collection of the Lopez note at its maturity in 2015.

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  • 4 years ago

    record the collection of the Lopez note at its maturity in 2015

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  • 4 years ago

    Record the collection of the Lopez note at its maturity in 2018

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