DUE ASAP POINTS IMMEDIATLY Exercise 8-7 Gwynne Supply Co. has the following tran

Question

DUE ASAP POINTS IMMEDIATLY

Exercise 8-7 Gwynne Supply Co. has the following transactions related to notes receivable during the last 2 months of the year 1. Nov. 1 Loaned $67,700 cash to B. Akey on a 1-year, 8% note. 2. Dec. 11 Sold goods to R. P. Mayrl, Inc., receiving a $4,300, 90-day, 9% note. 3. Dec. 16 Received a $14,100, 6-month, 9% note to settle an open account from M. Colvin. 4. Dec. 31 Accrued interest revenue on a notes receivable. Journalize the transactions for Gwynne Supply Co. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to o decimal places, e.g. 5,250.) Date Account Titles and Explanation Credit No. Debit Click if you would like to show work for this question Open Show Work

Explanation / Answer

Hi,

Please find the detailed answer as follows:

November 1:

Notes Receivable Dr. 67700

Cash Cr. 67700

Dec 11:

Notes Receivable Dr. 4300

Sales Cr. 4300

Dec 16:

Notes Receivable Dr. 14100

Accounts Receivable Cr. 14100

Dec 31:

Total Interest Accrued = 67700*2/12*8% + 4300*9%*90/360 + 14100*9%*1/24 = 1052

Interest Receivable Dr. 1052

Interest Revenue Cr. 1052

Thanks.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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