ezto.mheducation.com 11. 10.00 10.00 points You did not receive full credit for
ID: 2510706 • Letter: E
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ezto.mheducation.com 11. 10.00 10.00 points You did not receive full credit for this question in a previous attempt On December 1, 2018, Liang Chemical provides services to a customer for $90,000. In payment for the services, the customer signs a three-year, 10% note. The face amount is due at the end of the third year, while annual interest is due each December 1 Required 1. Record the acceptance of the note on December 1, 2018, 2. Record the interest collected on December 1 for 2019 and 2020, and the adjustment for interest revenue on December 31 for 2018, 2019, and 2020. 3. Record the cash collection on December 1, 2021 Prepare the journal entries for the above transactions. (If no entry is required for a transactionievent, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Nctes receivable 90,000 2018 Service revenue 90,000 750 2018 Interest receivable Interest revenue 750 December 01 2019 9,000 Interest receivable Interest revenue 8,250 Interest receivable Interest revenue 750 2019 750 December 01 9,000 2020 Interest recelvable 750 Interest revenue 8,250 December 31,interest recelvable 750Explanation / Answer
Journal entry :
Date accounts & explantion debit credit Dec 1,2018 Notes receivable 90000 Sales revenue 90000 (To record notes receivable) Dec 31,2018 Interest receivable (90000*10%*1/12) 750 Interest revenue 750 (To record accured revenue) Dec 1,2019 Cash 9000 Interest receivable 750 Interest revenue 8250 (To record interest received) Dec 31,2019 Interest receivable 750 Interest revenue 750 (To record accured revenue) Dec 1,2020 Cash 9000 Interest receivable 750 Interest revenue 8250 (To record interest received) Dec 31,2020 Interest receivable 750 Interest revenue 750 (To record accured revenue) Dec 1,2021 Cash 99000 Interest receivable 750 Interest revenue 8250 Notes receivable 90000 (To record cash collection)Related Questions
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