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Vaughn Company had the following selected transactions. Apr. 1, 2022 Accepted Goodwin Company's 12-month, 12% note in settlement of a $67,800 account receivable. July 1,
Vaughn Company had the following selected transactions. Apr. 1, 2022 Accepted Goodwin Company's 12-month, 12% note in settlement of a $67,800 account receivable. July 1, 2022 Loaned $69,800 cash to Thomas Slocombe on a 9-month, 10% note. Dec. 31, 2022 Accrued interest on all notes receivable. Apr. 1, 2023 Received principal plus interest on the Goodwin note. Apr. 1, 2023 Thomas Slocombe dishonored its note; Vaughn expects it will eventually collect. Prepare journal entries to record the transactions. Vaughn prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record interest at 12%) (To record interest at 10%) (To record principal plus interest on the Goodwin note) (To record note dishonoured)
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