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Accounting for Notes Receivable Yarnell Electronics sells computer systems to small businesses. Yarnell engaged in the following activities involving notes receivable: a. On September 1, Yarnell sold a $5,000 system to Ross Company. Ross gave Yarnell a 6-month, 11% note as payment. b. On December 1, Yarnell sold an $7,300 system to Searfoss Inc. Searfoss gave a 9-month, 10% note as payment. c. On March 1, On March 1, Ross paid the amount due on its note. d. On September 1, Searfoss paid the amount due on its note. Required: Prepare the necessary journal and adjusting entries for Yarnell Electronics to record these transactions. If an amount box dow not require an entry, leave it blank. If required, round your answers to two decimal places. Note from Ross Company: Sept. 1 Notes Receivable Sales Revenue Mar. 1 (Record sale) Dec. 31 Interest Receivable Sales Revenue (Record accrued interest income) Notes Receivable Interest Receivable X 5,000 183.33 ✓ ✓ 5,275 5,000 183.33 5,000.00 103.33

Accounting for Notes Receivable Yarnell Electronics sells computer systems to small businesses. Yarnell engaged in the following activities involving notes receivable: a. On September 1, Yarnell sold a $5,000 system to Ross Company. Ross gave Yarnell a 6-month, 11% note as payment. b. On December 1, Yarnell sold an $7,300 system to Searfoss Inc. Searfoss gave a 9-month, 10% note as payment. c. On March 1, On March 1, Ross paid the amount due on its note. d. On September 1, Searfoss paid the amount due on its note. Required: Prepare the necessary journal and adjusting entries for Yarnell Electronics to record these transactions. If an amount box dow not require an entry, leave it blank. If required, round your answers to two decimal places. Note from Ross Company: Sept. 1 Notes Receivable Sales Revenue Mar. 1 (Record sale) Dec. 31 Interest Receivable Sales Revenue (Record accrued interest income) Notes Receivable Interest Receivable X 5,000 183.33 ✓ ✓ 5,275 5,000 183.33 5,000.00 103.33

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounting for Notes Receivable Yarnell Electronics sells computer systems to small businesses. Yarnell engaged in the following activities involving notes receivable: a. On September 1, Yarnell sold a $5,000 system to Ross Company. Ross gave Yarnell a 6-month, 11% note as payment. b. On December 1, Yarnell sold an $7,300 system to Searfoss Inc. Searfoss gave a 9-month, 10% note as payment. c. On March 1, On March 1, Ross paid the amount due on its note. d. On September 1, Searfoss paid the amount due on its note. Required: Prepare the necessary journal and adjusting entries for Yarnell Electronics to record these transactions. If an amount box does not require an entry, leave it blank. If required, round your answers to two decimal places. Note from Ross Company: Sept. 1 Notes Receivable Sales Revenue Mar. 1 (Record sale) Dec. 31 Interest Receivable Sales Revenue (Record accrued interest income) Cash Notes Receivable Interest Receivable X 5,000 183.33 ✓ ✓ 5,275 5,000 183.33 5,000.00 103.33 Previous
Transcribed Image Text:Accounting for Notes Receivable Yarnell Electronics sells computer systems to small businesses. Yarnell engaged in the following activities involving notes receivable: a. On September 1, Yarnell sold a $5,000 system to Ross Company. Ross gave Yarnell a 6-month, 11% note as payment. b. On December 1, Yarnell sold an $7,300 system to Searfoss Inc. Searfoss gave a 9-month, 10% note as payment. c. On March 1, On March 1, Ross paid the amount due on its note. d. On September 1, Searfoss paid the amount due on its note. Required: Prepare the necessary journal and adjusting entries for Yarnell Electronics to record these transactions. If an amount box does not require an entry, leave it blank. If required, round your answers to two decimal places. Note from Ross Company: Sept. 1 Notes Receivable Sales Revenue Mar. 1 (Record sale) Dec. 31 Interest Receivable Sales Revenue (Record accrued interest income) Cash Notes Receivable Interest Receivable X 5,000 183.33 ✓ ✓ 5,275 5,000 183.33 5,000.00 103.33 Previous
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