Interest on all notes was collected on June 1, 2016 (notes receivable current =100, notes receivable long term= 100). The rate is 12% per annum. Cash collections of interest is first to be credited to excisting accrued interest receivable (debit of 16) carried over from preceding period.

Principal of current notes receivable collected June 1, 2016 interest was collected. Principal of remaining notes is payable June 1, 2017. On January 1,2017 an adjustment was made for reclassification of the notes receivable.

Journalize transactions and post to T Accounts.

Question

Interest on all notes was collected on June 1, 2016 (notes receivable current =100, notes receivable long term= 100). The rate is 12% per annum. Cash collections of interest is first to be credited to excisting accrued interest receivable (debit of 16) carried over from preceding period.

Principal of current notes receivable collected June 1, 2016 interest was collected. Principal of remaining notes is payable June 1, 2017. On January 1,2017 an adjustment was made for reclassification of the notes receivable.

Journalize transactions and post to T Accounts.

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Interest on all notes was collected on June 1, 2016 (notes receivable current =100, notes receivable long term= 100). The rate is 12% per annum.

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