Exercise 8-10 Tamarisk, Inc. has the following transactions related to notes rec

Question

Exercise 8-10 Tamarisk, Inc. 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 $61,800 cash to C. Bohr on a 12-month, 6% note Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $7,200, 90-day, 6% note. Dec. 16 Received a $7,200, 180-day, 9% note to settle an open account from A. Murdock. Dec. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Tamarisk, Inc. (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

SOLUTION:-

notes receivables a/c

to cash

notes receivables a/c

to sales revenue

notes receivables a/c

to accounts receivables

interest receivable a/c

to interest revenue

*dec 31 1.61800*6%*2/12=618

2.7200*6%20/360=24

3. 7200*9% *15/360=27

total accrued interest=669  

DATE PARTICULARS DEBIT CREDIT NOV 1

notes receivables a/c

to cash

61800 61800 dec 11

notes receivables a/c

to sales revenue

7200 7200 dec 16

notes receivables a/c

to accounts receivables

7200 7200 dec 31

interest receivable a/c

to interest revenue

669 669

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.