CALCULATOR MESSAGE MVINSTRUCTOR FULLSCREEN PRINTER VERSION BACK Exercise 8-10 Or

Question

CALCULATOR MESSAGE MVINSTRUCTOR FULLSCREEN PRINTER VERSION BACK Exercise 8-10 Oriole Company has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. (omit cost of goods sold entries.) Nov. 1 Loaned $64,200 cash to C. Bohr on a 12-month, 8% note. Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $7.200. 90-day 9% note. Dec. 16 Received a $16,800, 180-day, 11% note to settle an open account from A. Murdock. Dec. 31 Accrued interest revenue on all notes receivable Journalize the transactions for onole Company Credit account titles are automatically indented when amount is entered. Do not indent manually Record ournal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Explanation / Answer

Date

General journal

debit

credit

Nov 1

Notes receivable

64200

Cash

64200

Dec 11

Notes receivable

7200

Sales Revenue

7200

Dec 16

Notes receivable

16800

Accounts Receivable

16800

Dec 31

Interest Revenue

969

Interest Receivable

969

Explanation:

Dec 31

First Note

2 months accrued

64200 x 8% x 2/12 = $856 accrued interest

Second Note

20 days accrued

7200 x 9% x 20/360 = $36 accrued interest

Third Note

1/2 of a month has accrued

16800 x 11% x 1/24 = $77 accrued interest

Date

General journal

debit

credit

Nov 1

Notes receivable

64200

Cash

64200

Dec 11

Notes receivable

7200

Sales Revenue

7200

Dec 16

Notes receivable

16800

Accounts Receivable

16800

Dec 31

Interest Revenue

969

Interest Receivable

969

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