Question

Oriole Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31.

Nov.	1		Loaned $61,800 cash to C. Bohr on a 12-month, 6% note.
Dec.	11		Sold goods to K. R. Pine, Inc., receiving a $7,200, 90-day, 6% note.
	16		Received a $7,200, 180-day, 9% note to settle an open account from A. Murdock.
	31		Accrued interest revenue on all notes receivable.

Journalize the transactions for Oriole Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Use 360 days for calculation.)

Answer 1

Answer
Date	Account titles and explanation	Debit	Credit
Nov-01	Notes Receivable	$     61,800
	Cash		$     61,800
Dec. 11	Notes Receivable	$       7,200
	Sales		$       7,200
Dec-16	Notes Receivable	$       7,200
	Account Receivable		$       7,200
Dec-31	Interest Receivable	$          668
	Interest Revenue		$          668
Interest Calculation:
Nov 1 Interest	$61800 X 6% X 2/12	$          618
Dec 11 Interest	$7200 x 6% x 20/365	$            24
Dec 16 Interest	$7200 x 9% x 15/365	$            27
		$          668