FINAN+MAN ACCT (LL)W/ACCESS+PROCTORIO
FINAN+MAN ACCT (LL)W/ACCESS+PROCTORIO
9th Edition
ISBN: 9781265172237
Author: Wild
Publisher: MCG
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Chapter 7, Problem 16QS
To determine

Concept Introduction

Interest Revenue: The income received by a business from investments made by them or debts they hold is known as interest revenue. Even though interest has not yet been paid in cash, a company must record it as revenue under the accrual basis of accounting.

The interest revenue in Year 1 and Year 2.

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Prepare journal entries to record transactions for Vitalo Company. Nov. 1 Accepted a $6,000, 180-day, 8% note from Kelly White in granting a time extension on her past-due account receivable. Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note. Apr. 30 White honored her note when presented for payment.
Following are transactions for Vitalo Company. 1 Accepted a $12,000, 180-day, 6% note from Kelly White in granting a time extension on her past-due account receivable. Nov. Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note. Apr. 30 White honored her note when presented for payment. th and April 30 and use those calculated values to prepare your Complete the table to calculate the interest amounts at December 31st journal entries. (Do not round intermediate calculations. Use 360 days a year.) Complete this question by entering your answers in the tabs below. Interest General Amounts Journal Complete the table to calculate the interest amounts at December 31st and April 30th. November 1 January 1 Total Through Through Through Maturity December 31 April 30 Principal Rate (%) Time Total interest
on december 1st Daw company accepts a $18,000, 45-day, 10% note from a customer. 1. prepare the year end adjusting entry to record accrued interest revenue on december 31st. 2. prepare the entry required on the notes maturity date assuming it is honored.   note: using 360 days a year
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