These transactions took place for Glavine Co. 2013 May 1 Received a $5,100, 12-m

ID: 2379152 • Letter: T

Question

These transactions took place for Glavine Co. 2013 May 1 Received a $5,100, 12-month, 9% note in exchange for an outstanding account receivable from S. Rooney. Dec. 31 Accrued interest revenue on the S. Rooney note. 2014 May 1 Received principal plus interest on the S. Rooney note. (No interest has been accrued since December 31, 2013.) Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.(Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,250.)

Explanation / Answer

May -1 2013

DEBIT 12 month ,9% NOTE RECIEVABLE = 5100

CREDIT S.ROONEY =5100

DEC-31 2013

DEBIT INTEREST ACCRUED ON NOTE RECIEVABLE [5100*9%*(9/12)] =306

CREDIT INTEREST ON 12 month ,9% NOTE RECIEVABLE =306

MAY -1 2014

DEBIT CASH [(5100+306) + 5100*9%*(4/12)] =5559

CREDIT 12 month ,9% NOTE RECIEVABLE = 5100

CREDIT INTEREST ACCRUED ON NOTE RECIEVABLE =306

CREDIT INTEREST ON 12 month ,9% NOTE RECIEVABLE[ 5100*9%*(4/12)]= 153