Marty Co. closes its books monthly. On June 30, selected ledger account balances are: Notes Receivable... $57,000

Question:

Marty Co. closes its books monthly. On June 30, selected ledger account balances are:

Notes Receivable……………... $57,000

Interest Receivable…………… 420

Notes Receivable include the following.

Date Maker Term 60 days 60 days 6 months Face Interest 10% May 16 May 25 June 30 Rice Inc. Smelter Co. $12,000 9% 12% Ku

During July, the following transactions were completed.

July 5 Made sales of $7,200 on Marty Co. credit cards.

14 Made sales of $1,000 on Visa credit cards.The credit card service charge is 3%.

14 Added $510 to Marty Co. credit card customer balances for finance charges on unpaid balances.

15 Received payment in full from Rice Inc. on the amount due.

25 Received notice that the Smelter Co. note has been dishonored. (Assume that Smelter Co. is expected to pay in the future.)

Instructions

(a) Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days.)

(b) Enter the balances at July 1 in the receivable accounts. Post the entries to all of the receivable accounts.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...