Question

Journalize the

20182018

and

20192019

transactions on

Second SavingSecond Saving?'s

books. Explanations are not needed. Use a? 365-day year to compute interest. Round interest calculations to the nearest dollar.

Second SavingSecond Saving?'s

accounting period ends on December 31. ?(Record debits? first, then credits. Exclude explanations from journal entries. Use a? 365-day year to compute interest on notes stated in days. For notes stated in? months, use the number of months when calculating? interest.)

20182018
Apr.	1		Loaned $ 9 comma 000$9,000 to OhkayOhkay?, Co. Received a twotwo?-month, 1212?% note.
Jun.Jun.	1		Collected the OhkayOhkay note at maturity.
Dec.	1		Loaned $ 7 comma 000$7,000 to VeraVera?, Inc. on a 120120?-day, 55?% note.
	31		Accrued interest revenue on the VeraVera note.
20192019
Mar.Mar.	3131		Collected the VeraVera note at maturity.

Begin with the transactions for

20182018.

Apr.? 1: Loaned

$ 9 comma 000$9,000

to

OhkayOhkay?,

Co. Received a

twotwo?-month,

1212?%

note.

Date			Accounts and Explanation	Debit	Credit
2018
Apr. 1

Answer 1

Journal entry:
Date	Accounts title and explanations				Debit $	Credit$
1-Apr	Notes receivable Account Dr.				9000
	Cash account					9000
1-Jun	Cash Account Account Dr.				9180
	Notes payable Account					9000
	Interest revenue (9000*12%*2/12)					180
1-Dec	Notes receivable Account Dr.				7000
	Cash account					7000
31-Dec	Accrued Interest revenue Account Dr.				28.76
	Interest revenue (7000*5%*30/365)					28.76
2019
31-Mar	Cash Account Dr.				7115.06
	Notes receivable Account					7000
	Interest revenue Account (7000*5%*90/365)					86.3
	Accrued Interest revenue Account					28.76