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Question 2 continued Part 2 (8 marks) Able Ltd has an overdue account receivable from Pearl Pty Ltd for $75 500. On 15 July Pearl
Question 2 continued Part 2 (8 marks) Able Ltd has an overdue account receivable from Pearl Pty Ltd for $75 500. On 15 July Pearl Pty Ltd requested a 60 day extension of the payment date, and Able Ltd agreed to accept a 60 day, 12% promissory note in exchange for the account receivable. Required Prepare journal entries to record the following events. (8 marks) A. The receipt of the promissory note. B. The maturity of the promissory note. A. Date Particulars Debit Credit B. + Date Particulars Debit Credit Question 2 continued Part 3 (6 marks) On 1st October, 2020 TiFA Ltd received the proceeds of $500,000 through the issue of a 7%, 5- year unsecured note. Interest is payable half-yearly on the 1st January and 1st July. TiFA Ltd's financial year ends on 30th June. Required Prepare journal entries to record the following events. (6 marks) A. The issue of the unsecured note. B. The payment of interest on 1st January, 2021 C. Interest accrued on 30th June, 2021. A Date Particulars Debit Credit B. Date Particulars Debit Credit C. Date Particulars Debit Credit
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