Exercise 8-11 These transactions took place for Crane Company 2016 May 1 Receive

Question

Exercise 8-11 These transactions took place for Crane Company 2016 May 1 Received a $6,900, 12-month, 796 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.) 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.) Date Account Titles and Explanation Debit Credit

Explanation / Answer

1-May Notes receivable 6900        Accounts Receivable-R.Stoney 6900 31-Dec Interest receivable 322 =6900*7%/12*8       Interest revenue 322 1-May Cash 7383       Interest receivable 322       Interest revenue 161 =6900*7%/12*4       Notes receivable 6900

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