Question
You are the accountant for Speedy Transmission Repair Company. The Company completed the following transactions: October 1, 2018 Provided services for a customer, Jane Smith,
You are the accountant for Speedy Transmission Repair Company. The Company completed the following transactions:
| October 1, 2018 | Provided services for a customer, Jane Smith, for $30,000 on account with terms of 2/15,n/30. |
| November 1, 2018 | Jane Smith has not paid her account. Speedy Transmission Repair Company accepted a 3 month, 9% note receivable from Jane Smith to settle its account receivable. |
| December 31, 2018 | Accrued interest on note from Jane Smith. |
| January 31, 2019 | Speedy Transmission Repair Company received the full amount due from Jane Smith including interest. |
Required:
Prepare journal entries for the above transactions. Round to the nearest dollar.
| DATE | ACCOUNTS & DESCRIPTION | DEBIT | CREDIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Oct 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
1118334329, 978-1118334324
