On December 1, Krauss Corporation accepted a 120-day, 6%, $ 4,000 note receivable from J. Oliver in

Question:

On December 1, Krauss Corporation accepted a 120-day, 6%, $ 4,000 note receivable from J. Oliver in exchange for his account receivable.

Requirements

1. Journalize the transaction on December 1.

2. Journalize the adjusting entry needed on December 31 to accrue interest revenue.

3. Journalize the collection of the principal and interest at maturity. Specify the date.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...