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On November 1, 2018, Benton Inc. accepted a three-month, 8%, $61,200 note from Canarie Inc. in settlement of its account. Interest is due on the

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On November 1, 2018, Benton Inc. accepted a three-month, 8%, $61,200 note from Canarie Inc. in settlement of its account. Interest is due on the first day of each month, starting December 1. Both companies' year ends are December 31. (a) V Your answer is correct. Prepare all journal entries for Benton over the term of the note. Assume that the note is collected in full on the maturity date. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Nov. 1, 2018 Notes Receivable 61200 Accounts Receivable 61200 Dec. 1, 2018 Cash 408 Interest Revenue 408 Dec. 31, 2018 Interest Receivable 408 Interest Revenue 408 Jan. 1, 2019 Cash 408 Interest Receivable 408 Feb. 1, 2019 cash 61608 Notes Receivable 61200 Interest Revenue 408 Your answer is correct. Prepare all journal entries for Canarie over the term of the note. Assume that the note is paid in full on the maturity date. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Nov. 1, 2018 + Accounts Payable 61200 Notes Payable 61200 Dec. 1, 2018 Interest Expense 408 Cash 408 Dec. 31, 2018 4 Interest Expense 408 Interest Expense Interest Payable 408 Jan. 1, 2019 Interest Payable 408 Cash 408 Feb. 1, 2019 Notes Payable 61200 Interest Expense 408 Cash 61608 (C) Assume that, instead of honouring the note at maturity, Canarie dishonours it. Prepare the necessary journal entry on Benton's books at the maturity date, February 1, 2019, assuming that eventual collection of the note is (1) expected, and (2) not expected. Interest was last paid by Canarie on January 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No Date Account Titles and Explanation Debit Credit (1) Feb. 1 (To record dishonoured note; eventual collection expected) (2) Feb. 1 (To record dishonoured note; eventual collection not expected)

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