Question

Consider the following transactions for Mad Dog Music. (Click the icon to view the transactions.) Journalize all transactions for Mad Dog Music, Round all amounts to the nearest dollar (For notes stated in days, use a 365-day year. Round your final answers to the nearest whole dollar. Record debits first, then credits. Exclude explanations from journal entries.) Dec. 6: Received a $15,000, 90-day, 10% note in settlement of an overdue accounts receivable from All Star Date Accounts Debit Credit 2018 Dec 6 Cash 15,370 Interest Revenue Dec. 31: Made an adjusting entry to accrue interest on the All Star note Date Accounts Debit Credit 2018 Dec 31 Dec. 31: Made a closing entry for interest revenue. Date Accounts Debit Credit 2018 Dec. 31 Mar. 6: Collected the maturity value of the All Star note. (Prepare a single compound journal entry) Date Accounts Debit Credit 2019 Mar 6 Jun 30: Loaned $12,000 cash to Love Joy Music, receiving a six-month, 18% note. Date Accounts Debit Credit 2019 Jun 30

Answer 1

Date	Account Titles and Explanation	Debit	Credit
2018
6-Dec	Notes Receivable	$ 15,000
	Accounts Receivable		$ 15,000
31-Dec	Interest Receivable	$      103
	Interest Revenue		$      103
	15000*10%*25/365
31-Dec	Interest Revenue	$      103
	Cash		$      103
2019
6-Mar	Cash	$ 15,370
	Notes Receivable		$ 15,000
	Interest Receivable		$      103
	Interest Revenue		$      267
	15000*10%*65/365
30-Jun	Notes Receivable	$ 12,000
	Cash		$ 12,000
2-Oct	Notes Receivable	$   6,000
	Accounts Receivable		$   6,000
1-Dec	Accounts Receivable	$   6,178
	Notes Receivable		$   6,000
	Interest Revenue		$      178
	6000*18%*60/365
1-Dec	Allowance for Bad Debts	$   6,178
	Accounts Receivable		$   6,178
30-Dec	Cash	$ 13,080
	Notes Receivable		$ 12,000
	Interest Revenue		$   1,080
	12000*18%*1/2