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Akron Corporation engaged in the following transactions involving promissory notes in 20 times 1 and 20 times 2. 20 times 1 Sept. 1 Sold land
Akron Corporation engaged in the following transactions involving promissory notes in 20 times 1 and 20 times 2. 20 times 1 Sept. 1 Sold land to Marge Bailey for $100,000. A 6-month, 9 percent note was received in exchange. Cost of the land was $100,000. Nov. 1 Received a 30-day, non-interest bearing note from Fred Hansen in settlement of his accounts receivable of $1,000. Dec. 1 Fred Hansen dishonored his note issued 30 days earlier. Dec. 31 Recorded accrued interest for December only (not September-November) on the note received from Marge Bailey. 20 times 2 Mar. 1 Received payment in full from Marge Bailey. Assume that all interest has already been accrued to the end of February but no cash receipt has been recorded. Journalize these transactions in the journal provided. Explanations are not needed. Akron records adjusting entries monthly. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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