Question
Holly Transport Inc. had the following transactions related to accounts and notes receivable. Apr. 1, 2013 Accepted Brando Company's 1-year, 12% note in settlement of
Holly Transport Inc. had the following transactions related to accounts and notes receivable.
Apr. 1, 2013 Accepted Brando Company's 1-year, 12% note in settlement of a $25,000 account receivable.
July 1, 2013 Loaned $15,000 cash to Laurel Bailey on a 9-month, 10% note.
Dec. 31, 2013 Accrued interest on all notes receivable.
Apr. 1, 2014 Received principal plus interest on the Brando note.
Apr. 1, 2014 Laurel Bailey dishonored its note: Holly Transport, Inc. expects it will eventually collect.
Instructions
Prepare journal entries to record the transactions. Holly Transport Inc. prepares adjusting entries once a year on December 31.
Step by Step Solution
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Date Account title Debit credit apr 1 Note receivable 25000 Account receivable 25000 being note ac...
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Financial and managerial accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
1st edition
111800423X, 9781118233443, 1118016114, 9781118004234, 1118233441, 978-1118016114
