9. value 2.00 points CP83 Recording Notes Receivable Transactions [LO 83] Jung &

Question

9. value 2.00 points CP83 Recording Notes Receivable Transactions [LO 83] Jung & Newbicalm Advertising (JNA) recently hired a new creative director, Howard Rachl, for its Madison Avenue office in New York To persuade Howard to move from San Francisco, JNA agreed to advance him $190,000 on April 30, 2015, on a one-year, 10 percent note, with interest payments required on October 31 and April 30, 2016 JNA issues quarterly financial statements on March 31, June 30, September 30, and December 31

Explanation / Answer

Journal entries Date Accounts title and explanations Debit $ Credit $ 30-Apr Notes receivable Account Dr. 190,000       Cash account 190000.00 30-Jun Interest receivable Account Dr. 3,167       Interest revenue Account (190000*10%*2/12) 3167.00 30-Sep Interest receivable Account Dr. 4750       Interest revenue Account (190000*10%*3/12) 4750 31-Oct Cash Account Dr. 9500      Interest revenue (190000*10%*1/12) 1583      Interest receivable (3167+4750) 7917 31-Dec Interest receivable Account Dr. 3167       Interest revenue Account (190000*10%*2/12) 3167 31-Mar Interest receivable Account Dr. 4750       Interest revenue Account (190000*10%*3/12) 4750 30-Apr Cash Account Dr. 9500      Interest revenue (190000*10%*1/12) 1583      Interest receivable (3167+4750) 7917 30-Apr Cash Account 190000      Notes receivable 190000

Related Questions

Navigate

• Browse (All)
• Browse 9
• Subjects

---

---

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