Exercise 8-14 Your answer is partially correct. Try again. Vandiver Company had

Question

Exercise 8-14 Your answer is partially correct. Try again. Vandiver Company had the following select transactions. Apr. 1, 2019 Accepted Goodwin Company's 12-month, 6% note in settlement of a $30,000 account receivable. July 1, 2019 Loaned $25,000 cash to Thomas Slocombe on a 9-month, 10% note. Dec. 31, 2019 Accrued interest on all notes receivable Apr. 1, 2020 Received principal plus interest on the Goodwin note. Apr. 1, 2020 Thomas Slocombe dishonored its note; Vandiver expects it will eventually collect. Prepare journal entries to record the transactions. Vandiver prepares adjusting entries once a year on December 31. (Cre when amount is entered. Do not indent manually. Record journal entries in the order presented in the problen Date Account Titles and Explanation 4/1/19 Notes Receivable Debit 30,000 30,000 Accounts Receivable 7/1/19 Notes Receivable 25,000 25,000 2,700 12/31/19Interest Receivable I 2000-2018John wileyasons, inc. All Rights Reserved. A Division of 20hnwileeasons.Inc cyPolicy

Explanation / Answer

Journal entries

Notes(1)Goodwin note: $30000*12%*9/12 = $2700

(2)Slowcombe : $25000*10%*6/12 = $1250

Date Account,title and explanation Debit Credit 4/1/19 Notes Receivable $30000 Accounts Receivable $30000 7/1/19 Notes Receivable $25000 Cash $25000 12/31/19 Interest Receivable $27001 Interest Revenue $2700 12/31/19 Interest Receivable $12502 Interest Revenue $1250 4/1/20 Cash $33600 Notes Receivable $30000 Interest Revenue($30000*12%*3/12) 900 Interest Receivable 2700 4/1/20 Accounts Receivable $26875 Notes Receivable $25000 Interest Revenue($25000*10%*3/12) 625 Interest Receivable 1250

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.