parts C (a) Prepare all journal entries for Tobita Merchants for the all of the
ID: 2560608 • Letter: P
Question
parts C
(a)
Prepare all journal entries for Tobita Merchants for the all of the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 2 decimal places, e.g. 52.50.)
Date
Account Titles and Explanation
Debit
Credit
LINK TO TEXT
LINK TO TEXT
(b)
Prepare any adjusting journal entry required on December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31
LINK TO TEXT
LINK TO TEXT
(c)
What amount will appear under interest revenue for Tobita’s income statement for the year ended December 31, 2017? Where will this amount be classified on the income statement? (Round answer to 2 decimal places, e.g. 52.75.)
parts C
At January 1, 2017, Tobita Merchants had a balance in the interest receivable account for several notes it had obtained from its customers in exchange for outstanding accounts. The following is a table containing details of the notes receivable and the balance of the interest accrued on each note as of the end of the last fiscal year, December 31, 2016.Customer Note
Principal Interest
Rate Issue
Date Term Interest
Accrued 1 E. Tessier $3,000 5.0% Nov. 1, 2016 3 months $25.00 2 R. Wolde 6,000 4.0% Nov. 30, 2016 5 months 20.00 3 D. Deng 10,500 6.0% Dec. 1, 2016 1 year 52.50 Total $97.50
All notes require that the interest be paid at the maturity of the note. All notes and interest were paid on time. Tobita prepares adjusting journal entries at the end of its fiscal year.
Tobita transactions of 2017:
Mar. 1 Received a $12,000, twelve-month, 5.0% note from T. Lalonde in settlement of an accounts receivable. Interest is due at maturity. Oct. 30 Received a $4,000, three-month, 4.0% note from J. Han in settlement of an accounts receivable. Interest is due at maturity. Nov. 30 Lent B. Morgan $10,000 cash in exchange for a two-year 6.0% note with interest due at maturity.
Explanation / Answer
totla interest revenue $1246.67
interest revenue other revenues 1246.67ansRelated Questions
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