Question

The following selected transactions occurred during 2016 and 2017 for Coral Importers. The company ends its accounting year on April 30. (Click the icon to view the transactions.) Journalize all required entries. Make sure to determine the missing maturity date. (Record debits first, then credits. Select the explanation on the last line of the journal entry table) Feb. 1: Loaned $11,000 cash to Carroll Fadal on a one-year, 10% note Date Credit Accounts and Explanation Note Receivable--Carroll Fadal Cash Debit 11,000 2016 Feb 1 11,000 Accepted note in exchange for cash Apr. 6: Sold goods to Turf Masters, receiving a 90-day, 6% note for $15,000. Ignore Cost of Goods Sold Date Credit 2016 Ant Accounts and Explanation Not Receivable-Turf Masters Sales Revenue Debit 15.000 15.000

Answer 1

Date	Account Titles	Debit	Credit
2016	Note Receivable - Caroll Fadal	$      11,000
Feb-01	Cash		$      11,000
Apr-06	Note Receivable - Turf masters	$      15,000
	Sales Revenue		$      15,000
Apr-30	Interest Receivable	$            334		=11000*10%*3/12+15000*6%*24/366
	Interest Revenue		$            334

Date	Account Titles	Debit	Credit
Jul-05	Cash	$      15,221
	Interest Revenue		$            162	=15000*6%*66/366
	Interest Receivable		$              59	=15000*6%*24/366
	Note Receivable - Turf masters		$      15,000

Date	Account Titles	Debit	Credit
2017	Cash	$      12,100
Feb-01	Interest Revenue		$            825	=11000*10%*9/12
	Interest Receivable		$            275	=11000*10%*3/12
	Note Receivable - Caroll Fadal		$      11,000

Interest has been calculated by assuming 366 days in 2016

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