These transactions took place for Blossom Company 2016 May 1 Received a $4,300,
ID: 2580117 • Letter: T
Question
These transactions took place for Blossom Company 2016 May 1 Received a $4,300, 12-month, 9% 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.) 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.) Account Titles and Explanation DebitExplanation / Answer
Dr. (In $)
Cr.(In $)
2016
May 1
9% Note Receivable
4,300
To Accounts Receivable
4,300
(Being 9% 12 Month Note received from R. Stoney)
Dec. 31
Accrued interest
258
To Interest Income
258
(Being Interest is accrued @9% for 8 months)
2017
May 1
Bank
4,689
To Accrued Interest
258
To Interest Income (For 4 months)
129
To 9% Note Receivable
4,300
(Being Amount received for note, accrued interest and interest for 4 months)
Dr. (In $)
Cr.(In $)
2016
May 1
9% Note Receivable
4,300
To Accounts Receivable
4,300
(Being 9% 12 Month Note received from R. Stoney)
Dec. 31
Accrued interest
258
To Interest Income
258
(Being Interest is accrued @9% for 8 months)
2017
May 1
Bank
4,689
To Accrued Interest
258
To Interest Income (For 4 months)
129
To 9% Note Receivable
4,300
(Being Amount received for note, accrued interest and interest for 4 months)
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