Ch$.5$ HW

Notes Receivable

Crowne Cleaning provides cleaning services for Amber Inc., a business with four buildings. Crowne assigned different cleaning charges for each building based on the amount of square feet to be cleaned. The charges for the four buildings are $$75,600,$$$70,200,$$$90,000,$ and $$50,400.$ Amber secured this amount by signing a note bearing $7\%$ interest on June $1.$

Required:

Prepare the journal entry to record the sale on June $1.$ If an amount box does not require an entry, leave it blank.

Determine how much interest Crowne will receive if the note is repaid on December $1.$ $

Prepare Crowne's journal entry to record the cash received to pay off the note and interest on December $1.$ If an amount box does not require an entry, leave it blank.