Exercise 9-12

Vandiver Company had the following select transactions.

Apr. 1, 2017 Accepted Goodwin Companys 12-month, 10% note in settlement of a $26,400 account receivable. July 1, 2017 Loaned $28,400 cash to Thomas Slocombe on a 9-month, 8% note. Dec. 31, 2017 Accrued interest on all notes receivable. Apr. 1, 2018 Received principal plus interest on the Goodwin note. Apr. 1, 2018 Thomas Slocombe dishonored its note; Vandiver expects it will eventually collect.

Prepare journal entries to record the transactions. Vandiver prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date Account Titles and Explanation Debit Credit 4/1/17 7/1/17 12/31/17 4/1/18 4/1/17 7/1/17 12/31/17 4/1/18 4/1/17 7/1/17 12/31/17 4/1/18 (To record interest at 10%.) 4/1/17 7/1/17 12/31/17 4/1/18 (To record interest at 8%.) 4/1/17 7/1/17 12/31/17 4/1/18 (To record principal plus interest on the Goodwin note.) 4/1/17 7/1/17 12/31/17 4/1/18 (To record note dishonoured.)