Question

Following are transactions of Leduc Company

	2017
Dec.	11	Accepted a $24,000, 6%, 60-day note dated this day in granting Fred Calhoun a time extension on his past-due account.
	31	Made an adjusting entry to record the accrued interest on the Fred Calhoun note.
	31	Closed the Interest income account.
	2018
Jan.	10	Discounted the Fred Calhoun note at the bank at 7%.
Feb.	10	The Fred Calhoun note was dishonoured. Paid the bank the maturity value of the note plus a $30 fee.
Mar.	5	Accepted a $13,500, 5.5%, 60-day note dated this day in granting a time extension on the past-due account of Donna Reed.
	29	Discounted the Donna Reed note at the bank at 7.5%.
May	7	The Donna Reed note had been received by the bank and paid by Donna Reed.
June	9	Accepted a $15,750, 60-day, 5% note dated this day in granting a time extension on the past-due account of Jack Miller.
Aug.	8	Received payment of the maturity value of the Jack Miller note.
	11	Accepted an $17,000, 60-day, 5% note dated this day in granting Roger Addison a time extension on his past-due account.
	31	Discounted the Roger Addison note at the bank at 6.5%.
Oct.	12	The Roger Addison note was dishonoured. Paid the bank the maturity value of the note plus a $30 fee.
Nov.	19	Received payment from Roger Addison of the maturity value of his dishonoured note, the fee, and interest on both for 40 days beyond maturity at 5%.
Dec.	23	Wrote off the Fred Calhoun account against Allowance for Doubtful Accounts.

Required:
Prepare General Journal entries to record the above transactions.

Answer 1

	JOURNAL ENTRIES IN BOOKS OF Leduc Company
DATE	PARTICULARS	L/F	DEBIT ($)	CREDIT ($)
11-12-17	Bills Receivable A/c                                  Dr		24000
	To Fred Calhoun			24000
	(Being 6% 60- day note accepted)
31-12-17	Accured Interest A/c                              Dr		78.9
	To Interest Income on note			78.9
	(Being accured interest on Fred Calhoun
	note @ 6% p.a. for 20 days)
31-12-17	Interest Income on Note A/c              Dr		78.9
	To Profit & Loss A/c			78.9
	(Interest income transferred to profit
	and loss account)
10-01-18	Bank A/c                                                       Dr.		22320
	Bill Discount Charges A/c                    Dr		1680
	To Bill Receivable   A/c			24000
	(Being bill discounted with bank @ 7%
	discount)
10-01-18	Fred Calhoun A/c                                    Dr.		236.7
	To Interest Income on note A/c			78.9
	To Accured Interest A/c			157.8
	(Being accured interest debited to
	party account)
10-02-18	Fred Calhoun A/c                                     Dr.		24030
	To Bank A/c			24000
	To Bank Charges A/c			30
	(Being note dishonoured and paid
	maturity value with fees of $30)
05-03-18	Bills Receivable A/c                                Dr		13000
	To Donna Reed			13000
	(Being 5.5% 60 day note accepted)
29-03-18	Bank A/c                                                      Dr		12487.5
	Bill Discount Charges A/c                    Dr		1012.5
	To Bills Receivable A/c			13000
	(Being bill discounted with bank @ 7.5%
	discount)
09-06-18	Bills Receivable A/c                                Dr		15750
	To Jack Miller			15750
	(Being 5.5% 60 day note accepted)
08-08-18	Bank A/c                                                       Dr		15879.45
	To Bills Receivable A/c			15750
	To Interest income on note
	(Being payment received on maturity
	from Jack miller with interest @ 5% for
	60 days)
11-08-18	Bills Receivable A/c                                Dr		17000
	To Roger Addison			17000
	(Being 5% 60 day note accepted)
31-08-18	Bank A/c                                                      Dr		15895
	Bill Discount Charges A/c                    Dr		1105
	To Bills Receivable A/c			17000
	(Being bill discounted with bank @ 7.5%
	discount)
12-10-18	Roger Addision A/c                                     Dr.		17030
	To Bank A/c			17000
	To Bank Charges A/c			30
	(Being note dishonoured and paid
	maturity value with fees of $30)
12-10-18	Roger Addision A/c		139.72
	To Interest Income on note A/c			139.72
	(Being accured interest debited to
	party account)
19-11-18	Bank A/c                                                        Dr		17262.87
	To Roger Addision A/c			17169.72
	To Interest Income on note A/c			93.15
	(Received amount from Roger addision
	with interest and late fees and interest
	for additional 40 days)
23-12-18	Allowances for Doubtful Accounts A/c                Dr		24266.7
	To Fred Calhoun			24266.7
	(Being Receivable against fred calhoun written off)