Question Help On March 1, Kale Corporation accepted a 60-day, 6%, $7,300 note re

Question

Question Help On March 1, Kale Corporation accepted a 60-day, 6%, $7,300 note receivable from J. Oliver in exchange for his account receivable Read the requirements. Requirement 1. Journalize the transaction on March 1. (Record debits first, then credits. Select the explanation on the last line of the ournal entry table.) Date Accounts and Explanation Debit Credit Mar Requirement 2. Journalize the adjusting entry needed on March 31 to accrue interest revenue. Round to the nearest dollar. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. For notes stated in days, use a 365-day year.) Date Accounts and Explanation Debit Credit Mar. 31 Choose from any list or enter any number in the input fields and then continue to the next question.

Explanation / Answer

Answer:-

Journalize the transaction on March 1st

1. Requirment:-

Note Receivable Account   Debit $ 7,300

Account Receivable- J Oliver Account Credit $ 7,300

( Being Note for J oliver's balance for 60 days @ 6% Issued)

Explanation:-

Debit the receiver and

credit the giver

2. Requirment

March 31

Interest Receivables Account Debit $ 36

Interest Revenue Account Credit $ 36

( Interest Calculations :-

$ 7300 * (30 /365) *0.06 = $36

accrued Interest Recognized.

Explanations :-

Debit the receiver

credit all the incomes and gain

3. Collection for Principe and maturity of interest

29th April ( 1st March + 60 days = 29th April )

Bank / Cash Account Debit $ 7,372

Interest Receivable account Credit $ 36

Interest Revenue Account Credit $ 36

Note Receivable account Credit $ 7,300

Calculation of Interest :-

7300*(30/365)*0.06 = $ 36

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