Accounting for notes receivable (Learning Objective 6) 15–20 min.

Journalize the following transactions of Baltic, Inc., which ends its accounting year on September 30:

May 1 Sep 17 30 Loaned $16,000 cash to Steve Franklin on a one-year, 6% note.

Sold goods to Findlay, Corp., receiving a 90-day, 10% note for $12,000. Ignore cost of goods sold.

Made a single entry to accrue interest revenue on both notes. Use a 360-day year for interest computations and round to the nearest dollar.

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