Morton Company had the following select transactions. 1, 2021 Accepted Remington Company's 1-year, 12% note in settlement of a $25,000 account receivable. Apr. July 1, 2021 Loaned $15,000 cash to Jenny Green on a 9-month, 10 % note. Dec. 31, 2021 Accrued interest on all notes receivable. Apr. 1, 2022 Received principal plus interest on the Remington note. Apr. 1, 2022 Jenny Green dishonored its note: Morton expects it will eventually collect.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
please prepare the journal entries for the following info.
Morton Company had the following select transactions.
Apr.
1,2021
Accepted Remington Company's 1-year, 12% note in settlement of a $25,000 account receivable.
July
1, 2021
Loaned $15,000 cash to Jenny Green on a 9-month, 10% note.
Dec. 31, 2021
Accrued interest on all notes receivable.
Apr.
1, 2022
Received principal plus interest on the Remington note.
Apr.
1, 2022
Jenny Green dishonored its note: Morton expects it will eventually collect.
Debit
Credit
Date
Account Titles and Explanation
4/1/21
7/1/21
12/31/21
(To record interest accrued on Remington note)
12/31/21
(To record interest accrued on Jenny Green note)
12/31/21
(To record interest accrued on Jenny Green note)
4/1/22
(To record collection of Remington note and interest)
4/1/22
(To record the dishonor of Jenny Green note)
Transcribed Image Text:please prepare the journal entries for the following info. Morton Company had the following select transactions. Apr. 1,2021 Accepted Remington Company's 1-year, 12% note in settlement of a $25,000 account receivable. July 1, 2021 Loaned $15,000 cash to Jenny Green on a 9-month, 10% note. Dec. 31, 2021 Accrued interest on all notes receivable. Apr. 1, 2022 Received principal plus interest on the Remington note. Apr. 1, 2022 Jenny Green dishonored its note: Morton expects it will eventually collect. Debit Credit Date Account Titles and Explanation 4/1/21 7/1/21 12/31/21 (To record interest accrued on Remington note) 12/31/21 (To record interest accrued on Jenny Green note) 12/31/21 (To record interest accrued on Jenny Green note) 4/1/22 (To record collection of Remington note and interest) 4/1/22 (To record the dishonor of Jenny Green note)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Notes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education