Question

%E9-16 (similar to) Question Help P y nownies due on m arch On May 1, 2017 1.2019 May Eument sold a piece of and is December 31. Assume that roducts Inc. sing price of $3.500.000 when compared to the going market rate of interest for 's agreed to conta 10 f organg is s Read them e Regments Prethe journals to recordeon Record and Exclude explanations from anyumas ) The mentaleon May 1, 2016. gore of good and the reduction of wory Requirements Prepare the journal entries to record the following events Them ent sale on May 1, 2018. gore cost of goods and the The year and interest accrual on December 31, 2018 The collection of the not a ble on matury March 2013 me that are the nor t on Juary 15 2018 for 33 673 300. Recorde uma for the a ction Am Done ORA Check

Answer 1

Journal entries for the events:

	Date	Account title and explanation	Debit	Credit
a	May 1, 2018	Notes receivable	$3,600,000
		Sales revenue		$3,600,000
		[To record sales revenue]
b	Dec 31,2018	Interest receivable	$72,000
		Interest revenue (3,600,000 x 3% x 8/12)		$72,000
		[To record accrued interest earned]
d	Mar 1,2019	Cash	$3,690,000
		Notes receivable		$3,600,000
		Interest receivable		$72,000
		Interest revenue (3,600,000 x 3% x 2/12)		$18,000
		[To record collection of notes receivable]
e	Jan 15,2019	Notes receivable	$3,673,300
		Sales revenue		$3,673,300
		[To record sales revenue]