Malone Supply Co. has the following transactions related to notes receivable dur

Question

Malone Supply Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. Nov. 1 Loaned $58,400 cash to B. Carr on a 12-month, 8% note. Dec. 11 Sold goods to R. P. Kiner, Inc., receiving a $4,100, 90-day, 9% note. Dec. 16 Received a $13,100, 180-day, 9% note to settle an open account from M. Adcock. Dec. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Malone Supply Co. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,250.)

Explanation / Answer

Date Account Debit Credit 1-Nov Notes receivable    58,400 cash    58,400 11-Dec Notes receivable      4,100 sales revenue      4,100 16-Dec Notes receivable    13,100 accounts receivable    13,100 31-Dec interest receivable    848.29 Interest income    848.29 Interest working 58400*8%*2/12 778.67 4100*9%*20/360 20.5 13100*9%*15/360 49.125 TOTAL interest    848.29

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