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Novak Company had the following select transactions. Apr. 1, 2019 Accepted Goodwin Companys 12-month, 16% note in settlement of a $98,600 account receivable. July 1,
Novak Company had the following select transactions.
Prepare journal entries to record the transactions. Novak prepares adjusting entries once a year on December 31.
| Apr. | 1, | 2019 | Accepted Goodwin Company’s 12-month, 16% note in settlement of a $98,600 account receivable. | |
| July | 1, | 2019 | Loaned $100,600 cash to Thomas Slocombe on a 9-month, 14% note. | |
| Dec. | 31, | 2019 | Accrued interest on all notes receivable. | |
| Apr. | 1, | 2020 | Received principal plus interest on the Goodwin note. | |
| Apr. | 1, | 2020 | Thomas Slocombe dishonored its note; Novak expects it will eventually collect. |
Prepare journal entries to record the transactions. Novak prepares adjusting entries once a year on December 31.
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
