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In: Accounting

On November 30, 2019, Tucker Products performed computer programming services for Thomas Inc. in exchange for...

On November 30, 2019, Tucker Products performed computer programming services for Thomas Inc. in exchange for a 5-month, $38,500, 12% note receivable. Thomas paid Tucker the full amount of interest and principal on April 30, 2020.

Required:

Prepare the necessary entries for Tucker to record the transactions described above. For a compound transaction, if an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar.

Nov. 30, 2019 Notes Receivable
Sales Revenue
Record issuance of the note
Dec. 31, 2019 Interest Receivable
Interest Income
Record accrued interest income
Apr. 30, 2020 Cash
Notes Receivable
Interest Receivable
Interest Income
Record collection of note receivable

Solutions

Expert Solution

Date Account Titles Debit Credit
Nov-30 Notes Receivable $            38,500
       Sales Revenue $             38,500
Dec-31 Interest Receivable $                  385 =38500*12%*1/12
       Interest Income $                  385
Apr-30 Cash $            40,425
       Notes Receivable $             38,500
       Interest Receivable $                  385
       Interest Income $               1,540 =38500*12%*4/12

ekkarill92 answered 2 years ago
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