O00 Discussions Assignments My Tools ResourcesClasslist Help Taken:21:34:35 Ebon

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O00 Discussions Assignments My Tools ResourcesClasslist Help Taken:21:34:35 Ebong Ngome: Attempt 1 Question 3 (12 points) Prepare Acme Supply Co. general journal entries for the following transactions: Jan. 1 Acme Accepted from RunTime Co. a 120 days, 10% note, as settlement of an outstanding $15,000 account receivable for goods sold last year. Acme loaned Warner Co. $30,000 cash, accepting a 90 days, 10% note. Jan. 25 Jan. 31 Prepared accrual adjusting entries for the interest revenues on both notes 99+ DOLL 5 6 1

Explanation / Answer

SOLUTION

Date Accounts titles and Explanation Debit ($) Credit ($) Jan.1 10% Note Receivable 15,000 Sales 15,000 (Being note receivable received on account of sale) Jan. 25 10% Note Receivable 30,000 Cash 30,000 (Being note receivable received on account of loan) Jan.31 Interest receivable 250 Interest Revenue(Run Time Co) (10%*1/12*15,000) 125 Interest revenue (Warner Co.) (10%*30,000*0.5/12) 125 (Beinmg accrued interest revenue recorded)

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