These transactions took place for Bonita Industries 2016 May 1 Stoney Received a

Question

These transactions took place for Bonita Industries 2016 May 1 Stoney Received a $6,800, 12-month, 6% note in exchange for an outstanding account receivable from R. Accrued interest revenue on the R. Stoney note. Received principal plus 31 2017 interest on the R. Stoney note. (No interest has been accrued since December May 1 31, 2016.) 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.) Debit Credit Date Account Titles and Explanation

Explanation / Answer

1-May Notes receivable 6800        Accounts Receivable-R.Stoney 6800 31-Dec Interest receivable 272 =6800*6%/12*8       Interest revenue 272 1-May Cash 7208       Interest receivable 272       Interest revenue 136 =6800*6%/12*4       Notes receivable 6800

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