Preparing a journal entry of the following transactions:
Apr. 1, 2020 Accepted Goodwin Comapany's 12-month, 10% note in settlement of a $30,400 account receivable
July 1, 2020 Loaned $32,400 cash to Thomas Slocombe on a 9-month, 8% note.
Dec. 31, 2020 Accrued interest on a all notes receivable
Apr. 1, 2021 Received principal plus interest on the Goodwin note.
Apr. 1, 2021 Thomas Slocombe dishonored its note; Pharoah expects it will eventually collect.
Journal entry
| Date | account and explanation | Debit | credit |
| Apr 1 | Notes receivable-Goodwin Company | 30400 | |
| Account receivable-Goodwin Company | 30400 | ||
| (To record notes receivable) | |||
| July 1 | Notes receivable-Thomas Slocombe | 32400 | |
| Cash | 32400 | ||
| (To record loan given) | |||
| Dec 31 | Interest receivable (30400*10%*9/12+32400*8%*6/12) | 3576 | |
| Interest revenue | 3576 | ||
| (To record interest) | |||
| Apr 1 | Cash | 33440 | |
| Notes receivable-Goodwin Company | 30400 | ||
| Interest receivable | 2280 | ||
| Interest revenue | 760 | ||
| (To record cash collection) | |||
| Apr 1 | Account receivable-Thomas Slocombe | 34344 | |
| Notes receivable-Thomas Slocombe | 32400 | ||
| Interest receivable | 1296 | ||
| Interest revenue | 648 | ||
| (To record dishonor) | |||
Preparing a journal entry of the following transactions: Apr. 1, 2020 Accepted Goodwin Comapany's 12-month, 10%...