Journal Entries (Note Received, Renewed, and Collected)Jan.Received a 30-day, 6% note in payment for merchandise sale of $20,000.16Feb. Received $100 (interest) on the old (January 16) note; the old note is renewed for 3015days at 7%.Mar.Received principal and interest on the new (February 15) note.1719 Received a 60-day, 6% note in payment for accounts receivable balance of $8,000.May Received $80 (interest) plus $1,000 principal on the old (March 19) note; the old note18 renewed for 60 days (from May 18) at 6%.JulyReceived principal and interest on the new (May 18) note.17Prepare general journal entries for the transactions. Assume 360 days in a year.Page: 1DOC. POST.NO. REF.DATEACCOUNT TITLEDEBIT CREDIT20--1Jan. 16234Feb. 1546.68Mar. 17910101111121213 Mar. 19131414151516 May 1816171718181919202021 July 1721222223232424

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Answered: rest) on the old (3 nd interest on the…

Business

Accounting

rest) on the old (3 nd interest on the 5% note in payme st) plus $1,000 p

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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Question

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Journal Entries (Note Received, Renewed, and Collected)
Jan.
Received a 30-day, 6% note in payment for merchandise sale of $20,000.
16
Feb. Received $100 (interest) on the old (January 16) note; the old note is renewed for 30
15
days at 7%.
Mar.
Received principal and interest on the new (February 15) note.
17
19 Received a 60-day, 6% note in payment for accounts receivable balance of $8,000.
May Received $80 (interest) plus $1,000 principal on the old (March 19) note; the old note
18 renewed for 60 days (from May 18) at 6%.
July
Received principal and interest on the new (May 18) note.
17
Prepare general journal entries for the transactions. Assume 360 days in a year.
Page: 1
DOC. POST.
NO. REF.
DATE
ACCOUNT TITLE
DEBIT CREDIT
20--
1
Jan. 16
2
3
4
Feb. 15
4
6.
6
8
Mar. 17
9
10
10
11
11
12
12
13 Mar. 19
13
14
14
15
15
16 May 18
16
17
17
18
18
19
19
20
20
21 July 17
21
22
22
23
23
24
24

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