Elburn supply co. has the following transactions related to notes receivable dur

Question

Elburn supply co. has the following transactions related to notes receivable during the last 2 months of 2017. The company does not make entries to accrve interest except at december 31. Nov. 1 loaned $22800 cash to money lopez on a 12-month, 10% note. dec. 11 spld goods to ralph kremer, inc., receiving a $56250, 90-day, 8% note. received a $47400, 180day, 12% note in exchange for joe fernettr's outstanding accounts receivable. accrued interest revenue on all notes receivable. journalize the transactins for elburn supply co. (credit account titles are automatically indented when amount is entered. do not indent manually. use 240 days for calculations. round answers to 0 decimal places, e.g. 5275. record journal entries in the order presented in the problem.)

Explanation / Answer

Journal Entries Date Particulars Dr Amt Cr Amt 1-Nov Loan and Advances Dr                   22,800.00 To Cash A/c           22,800.00 11-Dec Note Receivable dr                   56,250.00 To Sales           56,250.00 16-Dec Notes Receivable Dr                   47,400.00 To Accounts Receivable           47,400.00 31-Dec Interest Receivable                           860.33 To Interest Revenue                 860.33 (22,800*10%*2/12 + 56250*8%*20/365 + 47400*12%*15/365)

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