Exercise 5-17A Record notes receivable and interest revenue (LO5-7) On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $600,000 to its supplier using a 12-month, 11% note. Required: 1. The loan of $600,000 and acceptance of the note receivable on April 1, 2021. 2. The adjustment for accrued interest on December 31, 2021. 3. Cash collection of the note and interest on April 1, 2022. Record the above transactions for Shoemaker Corporation. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet N No 1 2 3 Date April 01, 2021 December 31, 2021 April 01, 2022 Notes Receivable Cash Interest Receivable Interest Revenue Cash Notes Receivable Interest Receivable Interest Revenue General Journal Debit 600,000 49,500 600,000 600,000 600,000 16,500 Credit 600,000 49,500 Ⓒ i

Exercise 5-17A Record notes receivable and interest revenue (LO5-7) On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $600,000 to its supplier using a 12-month, 11% note. Required: 1. The loan of $600,000 and acceptance of the note receivable on April 1, 2021. 2. The adjustment for accrued interest on December 31, 2021. 3. Cash collection of the note and interest on April 1, 2022. Record the above transactions for Shoemaker Corporation. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet N No 1 2 3 Date April 01, 2021 December 31, 2021 April 01, 2022 Notes Receivable Cash Interest Receivable Interest Revenue Cash Notes Receivable Interest Receivable Interest Revenue General Journal Debit 600,000 49,500 600,000 600,000 600,000 16,500 Credit 600,000 49,500 Ⓒ i

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 86APSA: Accounting for Notes Receivable Yarnell Electronics sells computer systems to small businesses....

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