Question

Tamarisk Company had the following select transactions.

Apr.	1, 2022		Accepted Goodwin Company’s 12-month, 8% note in settlement of a $30,000 account receivable.
July	1, 2022		Loaned $22,000 cash to Thomas Slocombe on a 9-month, 10% note.
Dec.	31, 2022		Accrued interest on all notes receivable.
Apr.	1, 2023		Received principal plus interest on the Goodwin note.
Apr.	1, 2023		Thomas Slocombe dishonored its note; Tamarisk expects it will eventually collect.

Prepare journal entries to record the transactions. Tamarisk prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
4/1/227/1/2212/31/224/1/23
4/1/227/1/2212/31/224/1/23
4/1/227/1/2212/31/224/1/23
	(To record interest accrued on Goodwin note)
4/1/227/1/2212/31/224/1/23
	(To record interest accrued on Thomas note)
4/1/227/1/2212/31/224/1/23
	(To record collection of Goodwin note and interest)
4/1/227/1/2212/31/224/1/23
	(To record the dishonor of Thomas note)

Answer 1

4/1/2022	Notes Receivable	30000
	Accounts Receivable		30000
7/1/2022	Notes Receivable	22000
	Cash		22000
12/31/2022	Interest Receivable	1800		=(30000*8%/12*9)
	Interest Revenue		1800
12/31/2022	Interest Receivable	1100		=(2200*10%/12*6)
	Interest Revenue		1100
4/1/2023	Cash	32400
	Notes Receivable		30000
	Interest Receivable		1800
	Interest Revenue		600	=(30000*8%/12*3)
4/1/2023	Accounts Receivable	23650
	Notes Receivable		22000
	Interest Receivable		1100
	Interest Revenue		550	=(22000*10%/12*3)