Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO T

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Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2017. The company does not make entries to accrue interest except at December 31.
Nov. 1 Loaned $13,200 cash to Manny Lopez on a 12-month, 10% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $24,750, 90-day, 8% note. 16 Received a $29,100, 180 day, 8% note in exchange for Joe Fernetti’s outstanding accounts receivable. 31 Accrued interest revenue on all notes receivable.

Explanation / Answer

1-Nov Notes Receivable 13200        Cash 13200 11-Dec Notes Receivable 24750         Sales 24750 16-Dec Notes Receivable 29100         Accounts Receivable 29100 31-Dec Interest Receivable 427          Interest Revenue 427 1-Nov Cash 14520          Interest Receivable 220          Interest Revenue 1100 =13200*10%/12*10          Notes Receivable 13200 Interest Receivable: Manny Lopez 220 =13200*10%/12*2 Ralph Kremer, Inc 110 =24750*8%/360*20 Joe Fernetti 97 =29100*8%/360*15 Total 427

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