Question
On December 31, 2020, Tobita Company had the following balances reported on its balance sheet: Notes Receivable $16,200 Interest Receivable $89.50 The following information is
On December 31, 2020, Tobita Company had the following balances reported on its balance sheet:
Notes Receivable | $16,200 | |
Interest Receivable | $89.50 |
The following information is available for the notes receivable reported on December 31, 2020.
Customer | Note Principal | Interest Rate | Issue Date | Term | Interest Accrued | |||||||||
1 | E. Tessier | $5,100 | 5.00% | Nov. 1, 2020 | 3 months | $42.50 | ||||||||
2 | R. Wolde | 5,100 | 4.00% | Nov. 30, 2020 | 5 months | 17.00 | ||||||||
3 | D. Deng | 6,000 | 6.00% | Dec. 1, 2020 | 1 year | 30.00 | ||||||||
Total | $16,200 | Total | $89.50 |
All notes require that the interest be paid on the maturity date of the note. All amounts owing on the notes were paid on time. Tobita prepares annual adjusting entries on December 31, the companys year end. Additional transactions of 2021:
Mar. 1 | Received a $12,900, twelve-month, 5.00% note from T. Lalonde in settlement of an accounts receivable. Interest is due at maturity. | |
Oct. 30 | Received a $6,000, three-month, 4.00% note from J. Han in settlement of an accounts receivable. Interest is due at maturity. | |
Dec. 1 | Provided a $10,000 loan to Morgan Industriesin exchange for a two-year, 6.00% note with interest due at maturity. Interest on the note is payable each year on November 30. |
New attempt is in progress. Some of the new entries may impact the last attempt grading.
Your answer is partially correct.
Prepare all required journal entries related to the notes receivables during 2021. (Credit Prepare any adjusting entries required on December 31, 2021 related to the notes receivables. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.)Show the amount and presentation for interest revenue on Tobitas multiple-step income statement for the year ended December 31, 2021. (Round answer to 2 decimal places, e.g. 52.75.)
Show how the notes receivable will be reported on Tobitas classified balance sheet on December 31, 2021. There were no estimated uncollectible amounts for the notes receivable. (List Current Assets in order of liquidity. Round answers to 2 decimal places, e.g. 52.75.)
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