Ivanhoe Company adjusts its accounting records monthly in order to prepare monthly financial statements. On September 30, 2021, selected general ledger account balances are: $30,000 Notes receivable Interest receivable 182 Notes Receivable include the following: Issue Date Maker Principal Interest Term $9.600 8% 3 months Aug. 1. 2021 K. Leroy Co. Aug. 31, 2021 Fournier Co. 7,200 9% 2 months Sept. 30, 2021 Nesbitt Co. 13,200 7% 18 months Interest is payable on the first day of each month for notes with terms of one year or longer. Interest is payable at maturity for notes with terms of less than one year in October, the following transactions were completed Oct. 31 Received notice that the Fournier Co. note had been dishonoured (Assume that Fournier is expected to pay in the future.) 31 Collected the amount owing from K. Leroy Co. Record the transactions on October 31 and the October 31 adjusting entry to accrue interest revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places, eg 5,275.) Date Account Titles and Explanation Debit Credit Oct. 31 (To record dishonoured note where collection is expected.) Oct. 31 (To record collection of note and interest.) 4 Oct. 31 (To accrue interest earned.) eTextbook and Media List of Accounts Create general ledger accounts for Notes Receivable and Interest Receivable and enter the opening balances on October 1. Post the entries from October 31 to Notes Receivable and Interest Receivable and update the balances. (Post entries in the order of Journal entry presented in the previous part.) Notes Receivable Date Explanation Ref. Debit Balance Credit Oct. 1 Balance 31 31 Interest Receivable Debit Date Explanation Ref. Credit Balance Oct. 1 Balance 31 31 31 Adjusting entry e Textbook and Media List of Accounts Show the balance sheet presentation of the interest and notes receivable accounts at October 31. (List Current Assets in order of liquidity.) IVANHOE COMPANY Balance Sheet (partial) Show the balance sheet presentation of the interest and notes receivable accounts at October 31. (List Current Ass order of liquidity.) IVANHOE COMPANY Balance Sheet (partial) Assets $ $ How would the journal entry on October 31 be different if Fournier were not expected to pay in the future? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Oct. 31 (To record dishonouring of note where collection is not expected.)
