Consider the following transactions for Rural Beginnings.
2011
Dec 6 Received a $4,000, 90-day, 9% note on account from AM Publishing.
31 Made an adjusting entry to accrue interest on the AM Publishing note.
31 Made a closing entry for interest revenue.
2012
Mar 4 Collected the maturity value of the AM Publishing note.
Jun 30 Loaned $15,000 cash to Johnathon’s Publishing, receiving a six-month, 8% note.
Oct 2 Received a $2,000, 60-day, 8% note for a sale to Ying Yang Music. Ignore cost of goods sold.
Dec 1 Ying Yang Music dishonored its note at maturity; wrote off the note as uncollectible, debiting Allowance for uncollectible accounts.
30 Collected the maturity value of the Johnathon’s Publishing note.
Requirement
1. Journalize all transactions for Rural Beginnings. Round all amounts to the nearest dollar. (For notes stated in days, use a 360-day year.)