Accounting for notes receivable (Learning Objective 6) 20–25 min.

Record the following transactions in the journal of Soothing Sounds Music.

Explanations are not required. Use a 360-day year for interest computations and round to the nearest dollar.

2013 Dec 6 31 31 2014 Mar 5 Jun 1 Oct 31 Dec 1 Received a $6,000, 90-day, 8% note on account from LM Publishing.

Made an adjusting entry to accrue interest on the LM Publishing note.

Made a closing entry for interest revenue.

Collected the maturity value of the LM Publishing note.

Loaned $12,500 cash to London Sounds, receiving a six-month, 7% note.

Received a $4,000, 60-day, 6% note from Union Music on its past-due account receivable.

Collected the maturity value of the London Sounds note.

AppendixLO1