Question

Apr.	18.	Received a $54,000, 30-day, 4% note dated April 18 from Glenn Cross on account.
	30.	Received a $45,600, 60-day, 8% note dated April 30 from Rhoni Melville on account.
May	18.	The note dated April 18 from Glenn Cross is dishonored, and the customer’s account is charged for the note, including interest.
June	29.	The note dated April 30 from Rhoni Melville is dishonored, and the customer’s account is charged for the note, including interest.
Aug.	16.	Cash is received for the amount due on the dishonored note dated April 18 plus interest for 90 days at 8% on the total amount debited to Glenn Cross on May 18.
Oct.	22.	Wrote off against the allowance account the amount charged to Rhoni Melville on June 29 for the dishonored note dated April 30.

Required:

Journalize the above transactions in the accounts of Safari Games Co., which operates a riverboat casino. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume a 360-day year when calculating interest. Round your answers to the nearest dollar.

Chart of Accounts

CHART OF ACCOUNTS
Safari Games Co.
General Ledger
ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Glenn Cross 122 Accounts Receivable-Rhoni Melville 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense

Journal

Journalize the above transactions in the accounts of Safari Games Co., which operates a riverboat casino. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume a 360-day year when calculating interest. Round your answers to the nearest dollar.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

Answer 1

Date	Account Titles and Explanations	Debit	Credit
April 18	Notes receivable	$ 54,000
	Account Receivable-Glenn Cross		$ 54,000
April 30	Notes receivable	$ 45,600
	Account receivable-Rhoni Melville		$ 45,600
May 18	Account Receivable-Glenn Cross	$ 54,180
	Notes receivable		$ 54,000
	Interest revenue                   ( $ 54,000 x 4% x 30 / 360 )		$ 180
June 29	Account Receivable-Rhoni Melville	$ 46,208
	Notes receivable		$ 45,600
	Interest revenue                   ( $ 45,600 x 8% x 60 / 360 )		$ 608
August 16	Cash	$ 55,264
	Accounts Receivable		$ 54,180
	Interest revenue                   ( $ 54,180 x 8% x 90 / 360 )		$ 1,084
October 22	Allowance for Doubtful Accounts	$ 46,208
	Account Receivable-Rhoni Melville		$ 46,208