Question
How would this look on a journal entry? Im struggling with the May 18 and july 17 entries. Journal Entries (Note Received, Renewed, and Collected)
How would this look on a journal entry? Im struggling with the May 18 and july 17 entries.
Journal Entries (Note Received, Renewed, and Collected)
1.Prepare general journal entries for the transactions.
When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank.
Jan. 16Received a 30-day, 9% note in payment for merchandise sale of $19,100.
Feb. 15Received $150 (interest) on the old (January 16) note; the old note is renewed for 30 days at 11%.
Mar. 17Received principal and interest on the new (February 15) note.19Received a 60-day, 9% note in payment for accounts receivable balance of $8,300.
May 18Received $125 (interest) plus $1,000 principal on the old (March 19) note; the old note is renewed for 60 days (from May 18) at 9%.
July 17Received principal and interest on the new (May 18) note.
Assume 360 days in a year.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started