Question
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Exercise 9- 10 Elburn Suply Co, has the following transactions related to notes recsivatte during the laat 2 mests of 2017. The camsuny doea nete except at December 31 the last 2 moeths of 2017. Ths compary doas net maks entries ta Nov. 1 Dec. 11 Loaned $13,800 cash to Manny Lopez on a 12-month, 10% note Sold goods to Ralph Kremer, Inc., receiving a $24,750, s0-day, 8% note. remer, Inc., receiving s24,750, 90-day, 8% note. a 16 Received a $19,600. 180 day, 12% note 31 Acrued interest revenue on all notes receiable. in exchange for Joe F emetti's outstan n. accounts receivable. Journalize the transactions for Fiburn Supply Co. (Credit account tites are autoweticaly indentend n aount is entered. Do set insdesst avs 360 days for calculation. Round answers to 0 decimaí paces, e.a. 5,275. Recond fournaí entries v the ardler areamed ie the prebleox.) Date nccount Titles and Explanation
Explanation / Answer
Date Journal Debit Credit 1-Nov Notes receivable 13,800 cash 13,800 - 11-Dec Notes receivable 24,750 - Sales revenue 24,750 - 16-Dec cash 19,600 - Notes receivable 19,600 - 31-Dec Accrued interest 692 - Interest income 692 13800*10%*2/12=230 - 24750*8%*21/90=462 -
