Vandiver company had the following select transactions. Apr. 1, 2017 accepted go
ID: 2468255 • Letter: V
Question
Vandiver company had the following select transactions. Apr. 1, 2017 accepted goodwin company's 12-month, 10% note in settlement of a $30400 account receivable. July 1, 2017 loaned $32400 cash to thomas socombe on a 9-monthm 8% note. Dec. 1, 2017accurved interest on all notes receivable. Apr. 1, 2018 received principal plus interest on the goodwin note. Apr. 1, 2018 thomas slecormbe dishonored its note: vandiver expects it will eventually collect. prepare journal entries to record the transactons. vandiver prepares adjusting entries once a year on december 3. (credit account titles are automatically indented when amount is entered. do not indent manually. record journal entries in the order presented in the problem.)Explanation / Answer
Journal Entries:
Date Accounts Titles and explanation Debit $ Credit $ Apr 1, 2017 Note Receivable 30400 Accounts Receivable 30400 July 1, 2017 Note Receivable 32400 Cash 32400 Dec 31, 2017 Interest receivable 3576 Interest income 3576 (for 9 months2280 + for 6 months1296) Apr. 1 2018 Cash 33440 Interest receivable 2280 Interest income 760 Notes Receivable 30400 Apr 1, 2018 Note Receivable with interest 34344 Interest income 648 Interest receivable 1296 Notes Receivable 32400 (Thomas dishonour the Note but company finds it collectible in future)Related Questions
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