Question

QUESTION #1 Harris Supply Co. has the following transactions related to notes receivable during the last year:

Jan. 11: Sold goods to B. J. Good, receiving a $38,000, 2-year, 8.5% note.

Feb. 5: Received a $12,800, 3-year, 5.45% note to settle an outstanding account receivable from M. Stu.
May 21: Loaned $95,000 cash to B. Woods on a 1-year, 19.75% note.
Aug. 16: Sold goods to R. P. Mayrl, Inc., receiving a $9,500, 180-day, 6.7% note.

Nov. 25: Received a $18,000, 6-month, 12.11% note to settle an open account from M. Kline.
Dec. 31: Accrued interest revenue on all notes receivable.

Journalize the transactions above. Assume a 360-day year, 30 day months. Round to 2 decimal places when needed.

Answer 1

11-Jan	8.5% 2 Year Note      Dr	$ 38,000.00
	To Sales		$ 38,000.00
	Sold goods to B. J. Good, receiving 2-year 8.5% note
05-Feb	5.45% 3 Year Note   Dr	$ 12,800.00
	To M.Stu		$ 12,800.00
	Received a $12,800, 3-year, 5.45% note from M. Stu.
21-May	19.75% 1 Year Note     Dr	$ 95,000.00
	To Bank		$ 95,000.00
	Loaned $95,000 B. Woods on a 1-year, 19.75% note.
16-Aug	6.7% 180 Day Note          Dr	$   9,500.00
	To Sales		$   9,500.00
	Sold goods to R. P. Mayrl, Inc.
25-Nov	12.11% 6 Month Note         Dr	$ 18,000.00
	To M.Kline		$ 18,000.00
	Received 6-month, 12.11% note to settle from M. Kline
31-Dec	8.5% 2 Year Note               Dr	$         3,150
	5.45% 3 Year Note             Dr	$             633
	19.75% 1 Year Note           Dr	$       11,566
	6.7% 180 Day Note            Dr	$             241
	12.11% 6 Month Note      Dr	$             221
	To Interest Income	$       15,811
Date	Note	Amount	No. of Days O/s as on 31.12	ROI	Interest
11-Jan	8.5% 2 Year Note	$ 38,000.00	356.00	8.50%	$           3,150
05-Feb	5.45% 3 Year Note	$ 12,800.00	331.00	5.45%	$               633
21-May	19.75% 1 Year Note	$ 95,000.00	225.00	19.75%	$         11,566
16-Aug	6.7% 180 Day Note	$   9,500.00	138.00	6.70%	$               241
25-Nov	12.11% 6 Month Note	$ 18,000.00	37.00	12.11%	$               221
Total Interest Accrued	$         15,811
None of the notes were matured