Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

- Question 8 of 15 Current Attempt in Progress Sunland Company adjusts its accounting records monthly in order to prepare monthly financial statements. On September

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
- Question 8 of 15 Current Attempt in Progress Sunland Company adjusts its accounting records monthly in order to prepare monthly financial statements. On September 30, 2021, selected general ledger account balances are: $39,600 Notes receivable Interest receivable 239 Notes Receivable include the following: Issue Date Maker Principal Interest Term $13,200 8% 3 months Aug 1, 2021 K. Leroy Co. Aug. 31, 2021 Fournier Co. 8,400 9% 2 months Sept. 30, 2021 Nesbitt Co. 18,000 7% 18 months Interest is payable on the first day of each month for notes with terms of one year or longer. Interest is payable at maturity for notes with terms of less than one year. In October, the following transactions were completed: Oct 31 Received notice that the Fournier Co. note had been dishonoured. (Assume that Fournier is expected to pay in future.) 31 Collected the amount owing from K Leroy Co. Record the transactions on October 31 and the October 31 adjusting entry to accrue interest revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Debit Credit Date Account Titles and Explanation act. 31 Cash Notes Receivable - Fournier Interest Revenue Interest Receivable (To record dishonoured note where collection is expected.) Oct. 31 Accounts Receivable - Resolute Notes Recevable - Leroy Interest Revenue Interest Receivable MacBook Pro - / 1 III Question 8 of 15 UCT. 31 Interest Receivable Interest Revenue (To accrue interest earned.) e Textbook and Media Listof Accounts Create general ledger accounts for Notes Receivable and interest Receivable and enter the opening balances on October 1. Post the entries from October 31 to Notes Receivable and interest Receivable and update the balances. (Post entries in the order of Journal entry presented in the previous part.) Notes Receivable Date Explanation Ref. Debit Credit Balance Oct. 1 Balance 31 31 31 31 Interest Receivable Credit Balance Date Explanation Ref. Debit Oct. Balance 31 31 31 Adjusting entry e Textbook and Media List of Accounts Show the balance sheet presentation of the interest and notes receivable accounts at October 31. (List Current Assets in order of liquidity.) MacBook Pro order of liquidity.) SUNLAND COMPANY Balance Sheet (partial) Assets $ $ e Textbook and Media List of Accounts How would the journal entry on October 31 be different if Fournier were not expected to pay in the future? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Debit Credit Date Account Titles and Explanation Oft 31 (To record dishonouring of note where collection is not expected.) eTextbook and Media List of Accounts Save for Later Last saved 17 days ago Attempts: 0 of 15 used Submit Ans

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Theory Conceptual Issues In A Political And Economic Environment

Authors: Harry I. Wolk, James L. Dodd, John J. Rozycki

7th Edition

1412953456, 978-1412953450

More Books

Students also viewed these Accounting questions

Question

Why do people purchase a home?

Answered: 1 week ago

Question

Th e last time I complained, nothing happened.

Answered: 1 week ago

Question

Th ey could have made my situation worse.

Answered: 1 week ago