Journalize the above transactions in the accounts of Safari Games Co., which ope

Question

Journalize the above transactions in the accounts of Safari Games Co., which operates a riverboat casino. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest.

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Journal

Journalize the transactions in the accounts of Safari Games Co., which operates a riverboat casino. Refer to the Chart of Accounts for exact wording of account titles. Round all computations to the whole dollar. Assume a 360-day year when calculating interest.

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JOURNAL

ACCOUNTING EQUATION

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Solution

Apr. 18. Received a $68,400, 30-day, 7% note dated April 18 from Glenn Cross on account. 30. Received a $38,400, 60-day, 6% note dated April 30 from Rhoni Melville on account. May 18. The note dated April 18 from Glenn Cross is dishonored, and the customer’s account is charged for the note, including interest. June 29. The note dated April 30 from Rhoni Melville is dishonored, and the customer’s account is charged for the note, including interest. Aug. 16. Cash is received for the amount due on the dishonored note dated April 18 plus interest for 90 days at 6% on the total amount debited to Glenn Cross on May 18. Oct. 22. Wrote off against the allowance account the amount charged to Rhoni Melville on June 29 for the dishonored note dated April 30.

Explanation / Answer

Journal Entries Date Accounting titles & Explanations Debit Credit 18-Apr Note receivable 68,400 Accounts receivable -Glenn Cross 68,400 30-Apr Note receivable 38,400 Account receivable-rhoni 38,400 18-May Accounts receivable 68,799 interest income (68400*7%*30/360) 399 note receivable 68,400 29-Jun Accounts receivable 38,784 interest income (38,400*6%*60/360) 384 note receivable 38,400 16-Aug Cash 69,831 Account receivable 68,799 interest income (68,799*6%*90/360) 1032 22-Oct Allowance for doubtful accounts 38,784 Account receivable 38,784

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