Question

The following data relate to notes receivable and interest for Owens Co., a financial services company. (All notes are dated as of the day they are received.) Assume 360 days in a year.

Mar. 8.		Received a $84,000, 6%, 60-day note on account.
31.		Received a $19,200, 7%, 90-day note on account.
May 7.		Received $84,840 on note of March 8.
16.		Received a $68,400, 8%, 90-day note on account.
June 11.		Received a $18,000, 9%, 30-day note on account.
29.		Received $19,536 on note of March 31.
July 26.		Received $18,135 on note of June 11.
Aug. 4.		Received a $4,800, 10%, 30-day note on account.
14.		Received $69,768 on note of May 16.
Dec. 2.		Received $4,840 on note of August 4.

Required:

Journalize the entries to record the transactions. For a compound transactions, if an amount box does not require an entry, leave it blank.

Mar. 8
Mar. 31
May 7
May 16
June 11
June 29
July 26
Aug. 4
Aug. 14
Dec. 2

Answer 1

Date	Account Titles & Explanation	Debit	Credit
Mar. 8	Notes Receivable	$84000
	Accounts Receivable		$84000
Mar. 31	Notes Receivable	$19200
	Accounts Receivable		$19200
May 7	Cash	$84840
	Notes Receivable		$84000
	Interest Revenue ($84000 * 0.06 * 60 / 360)		$840
May 16	Notes Receivable	$68400
	Accounts Receivable		$68400
June 11	Notes Receivable	$18000
	Accounts Receivable		$18000
June 29	Cash	$19536
	Notes Receivable		$19200
	Interest Revenue ($19200 * 0.07 * 90 / 360)		$336
July 26	Cash	$18135
	Notes Receivable		$18000
	Interest Revenue ($18000 * 0.09 * 30 / 360)		$135
Aug. 4	Notes Receivable	$4800
	Accounts Receivable		$4800
Aug. 14	Cash	$69768
	Notes Receivable		$68400
	Interest Revenue ($68400 * 0.08 * 90 / 360)		$1368
Dec. 2	Cash	$4840
	Notes Receivable		$4800
	Interest Revenue ($4800 * 0.10 * 30 / 360)		$40