**Educational Website Content: Accounting Transactions Journal Entries****Overview:**This guide provides a detailed transcription of journal entries related to the financial transactions of Telesco Enterprises with customer Abe Willis. The focus is on recording the issuance of a note, the accumulation of interest over the years, and the eventual repayment of the note. The note terms include a 36-month maturity and a 4% annual interest rate.### Transactions and Journal Entries:#### Transaction Date: January 1, 2018**Description:**- Telesco Enterprises issues a $330,700 note to customer Abe Willis for merchandise.- The merchandise had a cost of $126,900 for Telesco.- The note has a 36-month maturity with a 4% annual interest rate.**Journal Entries:**1. **Notes Receivable - Willis** - Debit: $330,7002. **Sales Revenue** - Credit: $330,700 - *To record the sale in exchange for the note from Abe Willis.*3. **Cost of Goods Sold** - Debit: $126,9004. **Merchandise Inventory** - Credit: $126,900 - *To record the cost of sale.*#### Transaction Date: December 31, 2018**Description:**- Telesco records interest accumulated for 2018.**Journal Entries:**1. **Interest Receivable - Willis** - Debit: $13,2282. **Interest Revenue** - Credit: $13,228 - *To record interest accumulated in 2018.*#### Transaction Date: December 31, 2019**Description:**- Telesco records interest accumulated for 2019.**Journal Entries:**1. **Interest Receivable - Willis** - Debit: $13,2282. **Interest Revenue** - Credit: $13,228 - *To record interest accumulated in 2019.*#### Transaction Date: December 31, 2020**Description:**- Abe Willis honors the note by paying in full with cash.**Journal Entries:**1. **Cash** - Debit: $356,1562. **Interest Revenue** - Credit: $13,2283. **Interest Receivable - Willis** - Credit: $

Notes Receivable :— It is one of the type of promissory note in which principal amount is receivable…

Record journal entries for the following transactions of Telesco Enterprises. Jan. 1, 2018 Issued a $330,700 note to customer Abe Willis as terms of a merchandise sale. The merchandise's cost to Telesco is $126,900. Note contract terms included a 36-month maturity date, and a 4% annual interest rate. Telesco records interest accumulated for 2018. Dec. 31, 2018 Dec. 31, 2019 Telesco records interest accumulated for 2019. Dec. 31, 2020 Abe Willis honors the note and pays in full with cash. If an amount box does not require an entry, leave it blank. Jan. 1, 2018 Notes Receivable: Willis Jan. 1, 2018 Sales Revenue To record sale in exchange for Notes Receivable: Willis, 36-month maturity, 4% interest rate Cost of Goods Sold Merchandise Inventory To record the cost of sale Dec. 31, 2018 interest Receivable: Willis interest Revenue To record interest accumulated in 2018 Dec 31, 2019 interest Receivable: Willis interest Revenue ✓ To record interest accumulated in 2019 Dec 31, 2020 Cash Notes Receivable: Willis interest Receivable: Wilis interest Revenue To record collection of principal and accumulated interest 330,700✔ 126,900 13,228 13,228 ✓ ✓ 330,700 ✓ 126,900 ✔ 13,228 13,228

Record journal entries for the following transactions of Telesco Enterprises. Jan. 1, 2018 Issued a $330,700 note to customer Abe Willis as terms of a merchandise sale. The merchandise's cost to Telesco is $126,900. Note contract terms included a 36-month maturity date, and a 4% annual interest rate. Telesco records interest accumulated for 2018. Dec. 31, 2018 Dec. 31, 2019 Telesco records interest accumulated for 2019. Dec. 31, 2020 Abe Willis honors the note and pays in full with cash. If an amount box does not require an entry, leave it blank. Jan. 1, 2018 Notes Receivable: Willis Jan. 1, 2018 Sales Revenue To record sale in exchange for Notes Receivable: Willis, 36-month maturity, 4% interest rate Cost of Goods Sold Merchandise Inventory To record the cost of sale Dec. 31, 2018 interest Receivable: Willis interest Revenue To record interest accumulated in 2018 Dec 31, 2019 interest Receivable: Willis interest Revenue ✓ To record interest accumulated in 2019 Dec 31, 2020 Cash Notes Receivable: Willis interest Receivable: Wilis interest Revenue To record collection of principal and accumulated interest 330,700✔ 126,900 13,228 13,228 ✓ ✓ 330,700 ✓ 126,900 ✔ 13,228 13,228

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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