Question
My main issue with this following problem is the Interest Receivable and the Interest Revenue, I got everything else correct but I am unsure about
My main issue with this following problem is the Interest Receivable and the Interest Revenue, I got everything else correct but I am unsure about these two. Thank you for your help!
Bramble Corp. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31.
Nov. 1 | Loaned $13,200 cash to Manny Lopez on a 12 month, 10% note. | |
Dec. 11 | Sold goods to Ralph Kremer, Inc., receiving a $24,750, 90-day, 8% note. | |
16 | Received a $29,100, 180 day, 8% note in exchange for Joe Fernettis outstanding accounts receivable. | |
31 | Accrued interest revenue on all notes receivable |
Journalize the transactions for Bramble Corp. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Use 360 days for calculation. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Nov. 1 | Notes Receivable |
| |
Cash | enter a debit amount | enter a credit amount | |
11Dec. | Notes Receivable | enter a debit amount | enter a credit amount |
Sales Revenue | enter a debit amount | enter a credit amount | |
Dec. 16 | Notes Receivable | enter a debit amount | enter a credit amount |
Accounts Receivable | enter a debit amount | enter a credit amount | |
Dec. 31 | Interest Receivable | enter a debit amount | enter a credit amount |
Interest Revenue | enter a debit amount | enter a credit amount |
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