Chapter $8$ Homework: Cash and Notes Receivable

stated rate and market rate are equal. Rodriguez paid the note in full, plus cash interest, on its maturity date. Required

a$.$ Prepare entries for Welsch on April $1,$ May $1,$ and December $31($year$-$end adjustment$).$ Welsch uses the gross method for cash discounts.

$\backslash$table$[[$Date$,$Account Name,$15,$Dr$.,Cr.],[$April $1,$Accounts Recelvable,$\sqrt[\phantom{2}]{v},18,000,0],[$Sales Revenue,$,0,18,000],[$To record thesale.,,,$],[$May $1,$Note Receivable,$v,18,000,0],[$Accounts Receivable,$v,0,18,000],[$To record the exchange of receivable for a not,,,$],[$Dec $31,$Interest Receivable,$,1,200,0],[$Interest Revenue,$,0,1,200],[$Ie cecond the adjusting entoy.,,,$]]$

b$.$ Identify which accounts and amounts should be presented on the current year annual income statement and December $31$ year$-$end balance sheet $($ignoring cash$).$

$\backslash$table$[[$Income Statement Account Income Statement Amount,$],[$Sales Revenue,$18,000],[$Interest Revenue,$1,200]]$

$\backslash$table$[[$Balance Sheet Account, Dec $31,$Balance Sheet Amount, Dec. $31,],[$Note Recelvable,$$,18,000],[$Interest Receivable,$,1,200]]$

C$.$ Record the entry on April $30$ of the following year for the recelpt of payment on the note.

$\backslash$table$[[$Date$,$Account Name,Dr$.,Cr.],[$Aprill $30,,0,0],[,0,0],[v,0,0],[v,0,0],[$To record the payment of note.,,$]]$