Exercise 8-11 These transactions took place for Blossom Company Record the trans

Question

Exercise 8-11

These transactions took place for Blossom Company

Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Exercise 8-11 Account titles to use for this exercise:

2016 May 1 Received a $4,300, 12-month, 9% note in exchange for an outstanding account receivable from R. Stoney. Dec. 31 Accrued interest revenue on the R. Stoney note. 2017 May 1 Received principal plus interest on the R. Stoney note. (No interest has been accrued since December 31, 2016.) ? C ii Seoure https eduqen.wieyplus.com.eduqen/ti/manuni I, Accounting, Gc Excrcise 8-11 Thesc transactions took plocc for Eloasom Company 11 ? part 2 H May 1 R calved a s4.300, 12-month, % nota in exchange tor an outstanding account receivabla tram R. Stanay. 2017 Review Score Raviw Resuts hy Stad May1 Received printipal plus interest on the R. Stoney note. No interest has been accrued since December 31, 2010. fournal entrics in the order presented in the problem.) Account Titles and Explanation Debit Credit T ANSWER O lype hene to search

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit 2016 may 1 Notes receivable 4300     Account receivable 4300 (To record notes receivable exchange with account receivable) 2016 Dec 31 Interest receivable (4300*9%*8/12) 258      Interest revenue 258 (To record accured interest) 2017 May 1 Cash 4687     Notes receivable 4300     Interest receivable 258      Interest revenue (4300*9%*4/12) 129 (To record collection of notes)

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