Notes Receivable Entries The following data relate to notes receivable and inter

Question

Notes Receivable Entries

The following data relate to notes receivable and interest for Owens Co., a financial services company. (All notes are dated as of the day they are received.) Assume 360 days in a year.

Mar. 8. Received a $90,000, 6%, 60-day note on account.
31. Received a $9,600, 7%, 90-day note on account.
May 7. Received $90,900 on note of March 8.
16. Received a $67,200, 8%, 90-day note on account.
June 11. Received a $42,000, 9%, 30-day note on account.
29. Received $9,768 on note of March 31.
July 26. Received $42,315 on note of June 11.
Aug. 4. Received a $3,600, 10%, 30-day note on account.
14. Received $68,544 on note of May 16.
Dec. 2. Received $3,630 on note of August 4.

Required:

Journalize the entries to record the transactions. For a compound transactions, if an amount box does not require an entry, leave it blank.

Mar. 8

Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable

Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable

Mar. 31

Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable

Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable

May 7

Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Interest Revenue
Notes Receivable

Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Notes Receivable

Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Interest Revenue

May 16

Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Payable
Notes Receivable

Accounts Payable
Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Receivable

June 11

Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Payable
Notes Receivable

Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Payable
Notes Receivable

June 29

Accounts Payable
Accounts Receivable
Cash
Interest Expense
Interest Revenue
Notes Receivable

Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
Unearned Interest

Accounts Receivable
Allowance for Doubtful Accounts
Cash
Interest Expense
Interest Receivable
Interest Revenue

July 26

Accounts Receivable
Bad Debt Expense
Cash
Interest Receivable
Interest Revenue
Notes Receivable

Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable

Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Interest Revenue
Unearned Interest

Aug. 4

Accounts Receivable
Bad Debt Expense
Cash
Notes Payable
Notes Receivable
Sales

Accounts Payable
Accounts Receivable
Cash
Interest Revenue
Notes Receivable
Sales

Aug. 14

Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Notes Receivable

Accounts Receivable
Allowance for Doubtful Accounts
Cash
Interest Receivable
Notes Payable
Notes Receivable

Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Interest Revenue

Dec. 2

Accounts Payable
Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Receivable

Accounts Receivable
Allowance for Doubtful Accounts
Cash
Interest Receivable
Notes Payable
Notes Receivable

Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Interest Revenue

Explanation / Answer

Answer

Date

Note receivable amount

Interest rate

Annual Interest

Days

Interest expense [Annual Interest x Days/360]

Notes + Interest

Cash Received

Cash Received on

Mar-08

90000

6%

5400

60

900

90900

90900

May-07

Mar-31

9600

7%

672

90

168

9768

9768

Jun-29

May-16

67200

8%

5376

90

1344

68544

68544

Aug-14

Jun-11

42000

9%

3780

30

315

42315

42315

Jul-26

Aug-04

3600

10%

360

30

30

3630

3630

Dec-02

Date

General Journal

Debit

Credit

Mar-08

Notes receivables

$          90,000.00

Accounts receivables

$               90,000.00

Mar-31

Notes receivables

$            9,600.00

Accounts receivables

$                 9,600.00

May-07

Cash

$          90,900.00

Interest Revenue

$                     900.00

Notes receivables

$               90,000.00

May-16

Notes receivables

$          67,200.00

Accounts receivables

$               67,200.00

Jun-11

Notes receivables

$          42,000.00

Accounts receivables

$               42,000.00

Jun-29

Cash

$            9,768.00

Interest Revenue

$                     168.00

Notes receivables

$                 9,600.00

Jul-26

Cash

$          42,315.00

Interest Revenue

$                     315.00

Accounts receivables

$               42,000.00

Aug-04

Notes receivables

$            3,600.00

Accounts receivables

$                 3,600.00

Aug-14

Cash

$          68,544.00

Interest Revenue

$                 1,344.00

Interest Revenue

$               67,200.00

Dec-02

Cash

$            3,630.00

Interest Revenue

$                       30.00

Accounts receivables

$                 3,600.00

Date

Note receivable amount

Interest rate

Annual Interest

Days

Interest expense [Annual Interest x Days/360]

Notes + Interest

Cash Received

Cash Received on

Mar-08

90000

6%

5400

60

900

90900

90900

May-07

Mar-31

9600

7%

672

90

168

9768

9768

Jun-29

May-16

67200

8%

5376

90

1344

68544

68544

Aug-14

Jun-11

42000

9%

3780

30

315

42315

42315

Jul-26

Aug-04

3600

10%

360

30

30

3630

3630

Dec-02

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

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