Question 1 Multi Media Ltd. completed the following transactions: September 14, 2016: Provided services to Inga...

Question 1

Multi Media Ltd. completed the following transactions:

September 14, 2016: Provided services to Inga Corporation on account, $3,000, terms 30 days.

November 1, 2016: Accepted a one-year, 12% note from Inga Corporation to settle its account.

December 31, 2016: Accrued interest on the note from Inga Corporation (round to the nearest dollar).

November 1, 2017: Received amount due from Inga Corporation.

Required:

Record entries for the above transactions.

Expert Solution

the following are the journal entires:

September 14,2016	Accounts receivable -Inga corporation a/c	$3,000
	.................To Service revenue a/c		$3,000
	(recording services provided on account)
november 1 2016	Notes receivable - Inga corporation a/c	$3,000
	..................To Accounts receivable - inga corporaton a/c		$3,000
	(beng notes receivable accepted by inga corporaton)
Decewmber 31 2016	Interest receivable a/c	$60
	............To Interest revenue a/c		$60
	(interest receivable from november 1 to december 31 =>$300012%2months/12=>$60)
november 1,2017	Cash a/c	$3,360
	.............To Notes receivable a/c		$3,000
	.............To Interest revenue a/c		$300
	.............To Interst receivablle a/c		$60
	(interest revenue = $3,00012%10 months /12=>$300) (being cash received in satisfaction of notes receivable aloing with interest @12%)

ekkarill92 answered 1 year ago

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