P5-77B. (Learning Objective 4: Accounting for notes receivable and accrued interest revenue)

Organic Meals completed the following selected transactions:

Requirements 1. Record the transactions in Organic Meals’ journal. Round all amounts to the nearest dollar.
Explanations are not required.
2. Show what Organic Meals will report on its comparative classified Balance Sheet at December 31, 20X7, and December 31, 20X6.

Transcribed Image Text:

20X6 Nov. 30 Dec. 31 20X7 Feb. 28. Mar. 1 1 Dec. 16 Dec. 31 Sold goods to Bragg Market, receiving a 30,000, three-month, 4.25% note. Made an adjusting entry to accrue interest on the Bragg Market note. Collected the Bragg Market note. Received a 90-day, 8.50%, 7,500 note from Don's Market on account. Sold the Don's Market note to Chelmsford Bank, receiving cash of 7,400. (Debit the difference to financing expense.) Lent 14,400 cash to Stratford Provisions, receiving a 90-day, 10.00% note. Accrued the interest on the Stratford Provisions note.