Record the following transactions for Redeker Co. in the general journal. (Recor

Question

Record the following transactions for Redeker Co. in the general journal. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Received principal plus interest on the Chamber note. (No interest has been accrued in 2018.)

2017 May 1 Received a $30,000, 12 months, 10% note in exchange for Mark Chamber’s outstanding accounts receivable. Dec. 31 Accrued interest on the Chamber note. Dec. 31 Closed the interest revenue account. 2018 May 1

Received principal plus interest on the Chamber note. (No interest has been accrued in 2018.)

Date Account Titles and Explanation Debit Credit (To record accrued interest on note.) (To close the interest revenue account.) SHOW LIST OF ACCOUNTS

Explanation / Answer

Date Account titles and explanation Debit Credit May 1, 2017 Notes receivable $30,000 Accounts receivable $30,000 Dec. 31, 2017 Interest receivable $2,000 Interest revenue($30,000 x 10% x 8/12) $2,000 Dec. 31, 2017 Interest revenue $2,000 Income summary $2,000 May 1, 2018 Cash $33,000 Notes receivable $30,000 Interest receivable $2,000 Interest revenue($30,000 x 10% x 4/12) $1,000

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