Question

Kingbird Company had the following select transactions. Apr. 1.2022 Accepted Goodwin Company's 12-month, 8% note in settlen July 1, 2022 Loaned $22,000 cash to Thomas Slocombe on a 9-month, 11% note. Dec 31, 2022 Accrued interest on all notes receivable. Apr. 1, 2023 Received principal plus interest on the Goodwin note. Apr. 1, 2023 Thomas Slocombe dishonored its note: Kingbird expects it will eventually collect. Prepare journal entries to record the transactions. Kingbird prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Date 4/1/22 7/1/22 12/31/22 (To record interest accrued on Goodwin note) (To record interest accrued on Thomas note)

Answer 1

Journal entry

Date	account and explanation	debit	Credit
4/1/2022	Notes receivable-Goodwin	49000
	Account receivable		49000
7/1/2022	Notes receivable-Thomas	22000
	Cash		22000
12/31/2022	Interest receivable (49000*8%*9/12)	2940
	Interest revenue		2940
	(To record interest accrued on goodwin note)
12/31/2022	Interest receivable (22000*11%*6/12)	1210
	Interest revenue		1210
	(To record interest accrued on thomas note)
4/1/23	Cash	52920
	Notes receivable-Goodwin		49000
	Interest receivable		2940
	Interest revenue		980
	(To record collection)
4/1/23	Account receivable	23815
	Notes receivable-Thomas		22000
	Interest receivable		1210
	Interest revenue		605
	(To record the dishonor of thomas note)