Question

Exercise 9-14

Math company had the following select transactions.

Ại. 1,2020 Accepted Goodwin Company's 12 months, 10 % note in settlement of a $ 20,200 account receivable.

July 1, 2020 Loaned $ 22.200 cash to Thomas Slocombe on a 9 -month, 8 % note

Dec. 31,2020 : Acerued Interest on all notes rectivable.

Apr. 1. 2021 Received principal plus interest on the Goodwin note

Apr. 1,2021 Thomas Slocombe dishonored its note: Nash expects it will eventually collect,

Prepare journal entries to record the transactions. Nash prepares adjusting entries once a year on December 31.

Answer 1

Date	Account title	Debit	credit
April 1 2020	10%Note receivable	20200
	Accounts receivable		20200
July 1 2020	8% Note receivable	22200
	cash		22200
Dec 31 2020	Interest receivable	1515
	Interest revenue		1515
	[Being interest accrued for 20200*10%*9/12][1April -31Dec ]
Dec 31 2020	Interest receivable	888
	Interest revenue		888
	[Being interest accrued for 22200*.08*6/12] [1July -31dec]
April 1 2021	cash	22220
	10%Note receivable		20200
	Interest receivable		1515
	Interest revenue (20200*10%*3/12)		505
April 1 2021	Accounts receivable	23532
	8%Note receivable		22200
	Interest receivable		888
	Interest revenue (22200*8%*3/12)		444