On December 11, 2016, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a $15,000, 60-day note.

Required:

Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2016, and the customers repayment on February 9, 2017, assuming:

1.	Interest of 9% was assessed in addition to the face value of the note.
2.	The note was issued as a $15,000 non-interest-bearing note with a present value of $14,777. The implicit interest rate on the note receivable was 9%. Assume a 360-day year.

CHART OF ACCOUNTS

Hooper Inc.

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
125	Notes Receivable
126	Discount on Notes Receivable
127	Interest Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Income
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue
431	Interest Income

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2016, and the customers repayment on February 9, 2017, assuming an interest rate of 9% was assessed in addition to the face value of the note. Additional Instruction

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT

Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2016, and the customers repayment on February 9, 2017, assuming the note was issued as a $15,000 non-interest-bearing note with a present value of $14,777. The implicit interest rate on the note receivable was 9%. Assume a 360-day year. Additional Instructions

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT