Question

Journal Entries (Note Received, Renewed, and Collected) 1. Prepare general journal entries for the transactions. When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank. Jan. 16 Received a 30-day, 9% note in payment for merchandise sale of $19,700. Feb. 15 Received $150 (interest) on the old (January 16) note; the old note is renewed for 30 days at 11%. Mar. 17 Received principal and interest on the new (February 15) note. 19 Received a 60-day, 9% note in payment for accounts receivable balance of $8,300. May 18 Received $125 (interest) plus $1,000 principal on the old (March 19) note; the old note is renewed for 60 days (from May 18) at 9%. July 17 Received principal and interest on the new (May 18) note. Assume 360 days in a year.

1. Prepare general journal entries for the transactions.

When required, enter amounts to the nearest cent. If an amount box does not require an entry, leave it blank.

Page:  

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-- Jan. 16						1
2							2
3							3
4	Feb. 15						4
5							5
6							6
7							7
8							8
9	Mar. 17						9
10							10
11							11
12							12
13	19						13
14							14
15							15
16	May 18						16
17							17
18							18
19							19
20							20
21	July 17						21
22							22
23							23
24							24

Answer 1

	DATE	ACCOUNT TITLE	DOC.	POST.	DEBIT	CREDIT
1	20-- Jan. 16	9%, Note Receivable			19700
2		Sales Revenue				19700
3		(To record Sales)
4	Feb. 15	Cash			150
5		Interest Revenue				150
6		11%, Note Receivable			19700
7		9%, Note Receivable				19700
8		(To record interest revenue and Renewal)
9	Mar. 17	Cash			19880.58
10		Interest Revenue				180.58
11		11%, Note Receivable				19700
12		(To record receipt of principal and Interest)
13	19	9%, Note Receivable			8300
14		Accounts Receivable				8300
15		(TO record payment of account Receivable)
16	18-May	Cash			1125
17		9%, Note Receivable - New			7300
18		Interest Revenue				125
19		9%, Note Receivable - Old				8300
20		(To record receipt of principal and Interest)
21	17-Jul	Cash			7409.5
22		Interest Revenue				109.5
23		9%, Note Receivable - New				7300
24		(To record receipt of principal and Interest)