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Kingbird Company had the following select transactions. Apr. 1, 2022Accepted Goodwin Company's 12-month, 6% note in settlement of a $30,000 account receivable. Loaned $15,000 cash
Kingbird Company had the following select transactions. Apr. 1, 2022Accepted Goodwin Company's 12-month, 6% note in settlement of a $30,000 account receivable. Loaned $15,000 cash to Thomas Slocombe on a 9-month, 10% note. July 1, 2022 Dec. 31,2022 Accrued interest on all notes receivable. Apr. 1, 2023 Received principal plus interest on the Goodwin note. Thomas Slocombe dishonored its note; Kingbird expects it will eventually collect. Apr. 1, 2023 Prepare journal entries to record the transactions. Kingbird prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Date 4/1/22 Notes Receivable 30,000 Accounts Receivable 30,000 15000 7/1/22 Notes receivable Cash 15000 12/31/22 Interest Receivable 1350 Interest Revenue 1350 (To record interest accrued on Goodwin note) 750 12/31/22 Interest Receivable Interest Revenue 750 (To record interest accrued on Thomas note) Cash 34050 4/1/23 Notes Receivable 30000 Interest Revenue 2700 1350 Interest Receivable (To record collection of Goodwin note and interest) 4/1/23 Cash 16125 Notes Receivable 15000 Interest Revenue 375 Interest Receivable 750 (To record the dishonor of Thomas note)
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