On December 1, 2018, Liang Chemical provides services to a customer for $71,000.

Question

On December 1, 2018, Liang Chemical provides services to a customer for $71,000. In payment for the services, the customer signs a three-year, 12% note. The face amount is due at the end of the third year, while annual interest is due each December 1 Required 1. Record the acceptance of the note on December 1, 2018 2. Record the interest collected on December 1 for 2019 and 2020, and the adjustment for interest revenue on December 31 for 2018, 2019, and 2020. 3. Record the cash collection on December 1, 2021 Prepare the journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the acceptance of the note. Note: Enter debits before credits.

Explanation / Answer

Answer 1 : To record the aaceptance of note

Answer 2 : To record collection of Interest & adjustment of Int revenue.

Answer 3 : To record cash collection on December 1 ,2021

Date Particulars Debit ($) Credit ($) December 1, 2018 12 % Note Receivable 71,000 Sales Revenue 71,000

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