5. value: 3.20 points QS 7-10 Note receivable LO P3 Daw Company\'s December 31 y

Question

5. value: 3.20 points QS 7-10 Note receivable LO P3 Daw Company's December 31 year-end unadjusted trial balance shows a $34,000 balance in Notes Receivable. This balance is from one 9% note dated December 1, with a period of 45 days. Assume Daw Company does not prepare reversing entries. Prepare journal entries for December 31 and for the note's maturity date assuming it is honored. (Use 360 days a year.) View transaction list Journal entry worksheet Record the year-end adjustment related to this note, if any. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Dec 31 Interest receivable (34000*9%*30/360) 255 Interest revenue 255 (TO record accured revenue) Jan 15 Cash 34382.50 Notes receivable 34000 Interest receivable 255 Interest revenue (34000*9%*15/360) 127.50 (To record cash receipt on note)

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