Question
1. Please provide journal entries for the following transactions related to Notes Receivable for XYZ Co. The company records an adjusting journal entry for accrued
1. Please provide journal entries for the following transactions related to Notes Receivable for XYZ Co. The company records an adjusting journal entry for accrued Interest Revenue once a year at 12/31.
2/1 Provided $7,500 of service to A Co. and accepted a 6 month 5% note.
3/1 Loaned Employee T $2,500 and accepted a 3 month 4% note.
6/1 Note from Employee T matured, they honor the note (we collect).
8/1 The note from A Co. matured today, they default.
10/1 Provided $5,000 of service to B Co. (2/10, n/30).
11/1 Accepted 3 month 3% note from B Co. (roll over A/R to N/R).
12/1 Loaned Employee Z $3,000 and accepted a 4 month 6% note.
12/31 Accrue interest revenue from Z, B, and A.
Next Year
2/1 Note from B Co. matures today, they honor the note (we collect).
3/15 Collect from A Co.
4/1 Note from Employee Z matures today, they honor the note (we collect).
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