Record the following transactions for Novak Corp. in the general journal. (Credit account titles are automatically...

Record the following transactions for Novak Corp. in the general journal. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

2020
May	1	Received a $40,950, 12-months, 12% note in exchange for Mark Chamber’s outstanding accounts receivable.
Dec.	31	Accrued interest on the Chamber note.
Dec.	31	Closed the interest revenue account.
2021
May	1	Received principal plus interest on the Chamber note. (No interest has been accrued in 2021.)

Date	Account Titles and Explanation	Debit	Credit
May 1, 2020Dec. 31, 2020May 1, 2021

May 1, 2020Dec. 31, 2020May 1, 2021

	(To record accrued interest on note.)
May 1, 2020Dec. 31, 2020May 1, 2021

	(To close the interest revenue account.)
May 1, 2020Dec. 31, 2020May 1, 2021

Solutions

Expert Solution

Date	Account	Debit	Credit
May 1	Notes Receivable	40950
	Accounts Receivable		40950


Dec 31	Interest receivable	3276
	Interest revenue		3276
	(4095012%8/12)


Dec 31	Interest revenue	3276
	Income summary		3276



May 1	Cash	45864
	Interest receivable		3276
	Interest revenue (4095012%4/12)		1638
	Notes Receivable		40950

ekkarill92 answered 2 years ago

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