Exercise 9-10 Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCO

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Exercise 9-10

Date

Account Titles and Explanation

Debit

Credit

SHOW LIST OF ACCOUNTS

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Date

Account Titles and Explanation

Debit

Credit

Exercise 9-10

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 $30,000 cash to Manny Lopez on a 12-month, 10% note. Dec. 11 Sold goods to Ralph Kremer, Inc., receiving a $6,750, 90-day, 8% note. 16 Received a $4,000, 180 day, 9% note in exchange for Joe Fernetti’s outstanding accounts receivable. 31 Accrued interest revenue on all notes receivable.

Explanation / Answer

Nov. 1 Notes Receivable 30000         Cash 30000 Dec-11 Notes Receivable 6750         Sales 6750 Dec-16 Notes Receivable 4000        Accounts Receivable 4000 Dec-31 Interest Receivable 545        Interest Revenue 545 Nov-01 Cash 33045       Interest Receivable 545        Interest Revenue 2500       Notes Receivable 30000 Interest accrued: Manny Lopez 500 =30000*10%/12*2 Ralph Kremer, Inc. 30 =6750*8%/360*20 Joe Fernetti 15 =4000*9%/360*15 Total 545

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