7) On October 1, 2019, Island Jewelry Company accepted a 4-month, 10% note for $2.400 in sement of an overdue account receivable. Interest revenue was accrued through December 31, 2019. Island receives the maturity value or the note at maturity. Prepare the journal entry to record the collection. (4 POINTS) 8) On December 1, 2019, Pinewood Company sold machinery to a customer for $2,000. Pinewood regularly sells machinery. The customer could not pay at the time of sale but agreed to pay 9 months later and signed a 9-month note at 12% interest. Prepare the journal entry to record the revenue at the time of sale. Ignore the entry for cost of goods sold. (2 POINTS) 9) The following selected transactions occurred during 2019 for Northwest Movers. The company ends it accounting year on December 31. Performed services on account for Ellison Rentals, Apr. 1 $12,000 Received a $12,000, 3 month, 9% note from Ellison in Aug. 1 satisfaction of its past-due account receivable. Nov. 1 Collected the Ellison note at maturity Prepare the journal entries to record these transactions. (7 POINTS) 10) On January 1, Cooper Company accepted a one-year note for $5,000 at 4% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company treated it as a dishonored note. Prepare the journal entry that Cooper will make to record the dishonored note. (3 POINTS) 7) On October 1, 2019, Island Jewelry Company accepted a 4-month, 10% note for $2.400 in settlement of an overdue account receivable. Interest revenue was accrued through December 31, 2019. Island receives the maturity value of the note at maturity. Prepare the journal entry to record the collection. (4 POINTS) 8) On December 1, 2019, Pinewood Company sold machinery to a customer for $2,000, Pinewood regularly sells machinery. The customer could not pay at the time of sale but agreed to pay 9 months later and signed a 9-month note at 12% interest. Prepare the journal entry to record the revenue at the time of sale. Ignore the entry for cost of goods sold. (2 POINTS) 9) The following selected transactions occurred during 2019 for Northwest Movers. The company ends it accounting year on December 31. Apr. 1 Performed services on account for Ellison Rentals, $12,000 Received a $12,000, 3 month, 9% note from Ellison in satisfaction of its past-due account receivable. Collected the Ellison note at maturity Aug. 1 Nov. 1 Prepare the journal entries to record these transactions. (7 POINTS) 10) On January 1, Cooper Company accepted a one-year note for $5,000 at 4% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company treated it as a dishonored note. Prepare the journal entry that Cooper will make to record the dishonored note. (3 POINTS)
