Question
Accounting Homework Q The following transactions occurred during 2020 and 2021 for Rona following the sale of merchandise to JP Morgan for $75,000 on credit.
Accounting Homework Q
The following transactions occurred during 2020 and 2021 for Rona following the sale of merchandise to JP Morgan for $75,000 on credit. Rona's fiscal year-end is December 31. Assume 28 days in the month of February.
| 01-Oct-20 | JP morgan indicated they won't be able to pay the full balance of the account until early next year. They agree to pay $15,000 cash and convert the balance of the amount owed to a 5-month, 8% note receivable.
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| 31-Dec-20 | Prepare the year-end interest adjustment for the note receivable. |
| 28-Feb-21 | JP Morgan dishonour their note at maturity. |
To do...
1. Prepare the journal entries for the transactions listed above. Round to 2 decimal places. Narratives are not required. Space has been provided to show interest calculations.
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| Date | Account Titles and Explanation | Debit | Credit |
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Financial Accounting
Authors: LibbyShort
7th Edition
78111021, 978-0078111020
