Exercise 8-8 These transactions took place for Glavine Co. 2013 1. May 1 Receive

Question

Exercise 8-8 These transactions took place for Glavine Co. 2013 1. May 1 Received a $7,000, 12-month, 7% note in exchange for an outstanding account receivable from S. Rooney. 2. Dec. 31 Accrued interest revenue on the S. Rooney note 3. May 1 Received principal plus interest on the S. Rooney note. (No interest has been accrued since December 31, 2013.) Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.(Credit account titles are automatically indented when amount is entered. Do not 2014 indent manually, Round ansvers to O decimal places, e.g. 5,250.) No. Date Debit Credit 1. 2. 3.

Explanation / Answer

May-01 Notes receivable 7000         Accounts Receivable 7000 Dec-31 Interest Receivable 327 =7000*7%/12*8         Interest Revenue 327 May-01 Cash 7490          Notes Receivable 7000         Interest Revenue 327         Interest Receivable 163

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.