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Need Help! Skysong Company had the following select transactions. Apr. 1, 2022 Accepted Goodwin Company's 12-month, 8% note in settlement of a $42,000 account receivable.
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Skysong Company had the following select transactions. Apr. 1, 2022 Accepted Goodwin Company's 12-month, 8% note in settlement of a $42,000 account receivable. July 1, 2022 Loaned $24,000 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; Skysong expects it will eventually collect. Prepare journal entries to record the transactions. Skysong 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.) Debit Credit Date Account Titles and Explanation 4/1/224 7/1/224 12/31/22 (To record interest accrued on Goodwin note) 12/31/22 (To record interest accrued on Thomas note) 4/1/23 (To record collection of Goodwin note and interest) | 4/1/23 4 (To record the dishonor of Thomas note)Step by Step Solution
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