Exercise 8-11 These transactions took place for Whispering Winds Corp. Record th

Question

Exercise 8-11

These transactions took place for Whispering Winds Corp.

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 indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Open Show Work

2016 May 1 Received a $2,900, 12-month, 6% note in exchange for an outstanding account receivable from R. Stoney. Dec. 31 Accrued interest revenue on the R. Stoney note. 2017 May 1 Received principal plus interest on the R. Stoney note. (No interest has been accrued since December 31, 2016.)

Explanation / Answer

Date Account Titles and Explanation Debit Credit May 1 2016 Notes Receivable 2,900 Accounts Receivable 2,900 December 31,2016 Interest Receivable ( $ 2,900 *6% *8/12) 116 Interest Revenue 116 May 1, 2017 Cash ( $ 2,900 + $ 116+ $ 58) 3,074 Interest Receivable 116 Interest Revenue ( $2,900 *6% * 4/12) 58 Notes Receivable 2,900

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