Vandiver Company had the following select transactions. Prepare journal entries
ID: 2585061 • Letter: V
Question
Vandiver Company had the following select transactions.
Prepare journal entries to record the transactions. Vandiver prepares adjusting entries once a year on 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
(To record principal plus interest on the Goodwin note.)
(To record note dishonoured.)
Apr. 1, 2017 Accepted Goodwin Company’s 12-month, 10% note in settlement of a $33,200 account receivable. July 1, 2017 Loaned $35,200 cash to Thomas Slocombe on a 9-month, 8% note. Dec. 31, 2017 Accrued interest on all notes receivable. Apr. 1, 2018 Received principal plus interest on the Goodwin note. Apr. 1, 2018 Thomas Slocombe dishonored its note; Vandiver expects it will eventually collect.Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars Dr Cr Apr 01'2017 Note receivable Dr 33,200.00 To Account receivable 33,200.00 Jul 01 - 2017 Note receivable DR 35,200.00 To Cash 35,200.00 Dec 31'2017 Interest receivable dr 3,898.00 To Interest income 3,898.00 (33200*10%*9/12 + 35200*8%*6/12) Apr 01 2018 Cash Dr 36,520.00 To Interest revenue = 33200*10%*3/12 830.00 To Note receivable 33,200.00 To Interest receivable = 33200*10%*9/12 2,490.00 Apr 01 2018 Account receivable dr 35,200.00 To note receivable 35,200.00
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