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Larkspur Company had the following select transactions. Apr. 1, 2022 Accepted Goodwin Company's 12-month, 6% note in settlement of a $49,000 account receivable. July
Larkspur Company had the following select transactions. Apr. 1, 2022 Accepted Goodwin Company's 12-month, 6% note in settlement of a $49,000 account receivable. July 1, 2022 Loaned $21,000 cash to Thomas Slocombe on a 9-month, 12% note. Dec. 31, 2022 Accrued interest on all notes receivable. Apr. 1, 2023 Received principal plus interest on the Goodwin note. Apr. 1, 2023 Thomas Slocombe dishonored its note; Larkspur expects it will eventually collect. Prepare journal entries to record the transactions. Larkspur 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.) Date Account Titles and Explanation Debit 4/1/22 Notes Receivable Accounts Receivable 7/1/22 Notes Receivable Cash 12/31/22 Interest Receivable 12/31/22 Interest Revenue (To record interest accrued on Goodwin note) Interest Receivable Interest Revenue (To record interest accrued on Thomas note) 4/1/23 Cash 4/1/23 Interest Receivable Interest Revenue Notes Receivable (To record collection of Goodwin note and interest) Accounts Receivable Interest Receivable Interest Revenue Notes Receivable (To record the dishonor of Thomas note) 49000 21000 2205 1260 51940 22890 Credit 49000 21000 2205 1260 49000 2205 735 21000 1260 630
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