The following data relate to notes receivable and interest for CGH Cable Co., a

Question

The following data relate to notes receivable and interest for CGH Cable Co., a cable manufacturer and supplier. (All notes are dated as of the day they are received.)

Apr. 10 Received a $144,000, 5%, 60-day note on account.

May 15 Received a $270,000, 7%, 120-day note on account.

June 9 Received $145,200 on note of April 10.

Aug. 22 Received a $150,000, 4%, 45-day note on account.

Sept. 12 Received $276,300 on note of May 15.

30 Received a $210,000, 8%, 60-day note on account.

Oct. 6 Received $150,750 on note of August 22.

18 Received a 120,000, 5%, 60-day note on account.

Nov. 29 Received $212,800 on note of September 30.

Dec. 17 Received $121,000 on note of October 18.

Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.

Explanation / Answer

Apr:10
Notes receivable(db) 144000
Account receivable(cr)144000
May1 5:
Notes receivable(db) 270000
Account receivable(cr)270000
Jun 9:
Cash(db) 145200
Interest revenue(cr) 1200
Notes receivable(cr) 144000
Aug 22:
Notes receivable(db) 150000
Account receivable(cr)150000
Sep 12:
Cash(db) 276300
Interest revenue(cr) 6300
Notes receivable(cr) 270000
Sep 30:
Notes receivable(db) 210000
Account receivable(cr)210000
OCt 6:
Cash(db) 150750
Interest revenue(cr) 750
Notes receivable(cr) 150000
Oct 18:
Notes receivable(db) 120000
Account receivable(cr)120000
Nov 29:
Cash(db) 212800
Interest revenue(cr) 12800
Notes receivable(cr) 210000
Dec 17:
Cash(db) 121000
Interest revenue(cr) 1000
Notes receivable(cr) 120000

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