Notes Receivable Entries
The following data relate to notes receivable and interest for Owens Co., a financial services company. (All notes are dated as of the day they are received.) Assume 360 days in a year.
Mar. 8. Received a $90,000, 6%, 60-day note on account.
31. Received a $9,600, 7%, 90-day note on account.
May 7. Received $90,900 on note of March 8.
16. Received a $67,200, 8%, 90-day note on account.
June 11. Received a $42,000, 9%, 30-day note on account.
29. Received $9,768 on note of March 31.
July 26. Received $42,315 on note of June 11.
Aug. 4. Received a $3,600, 10%, 30-day note on account.
14. Received $68,544 on note of May 16.
Dec. 2. Received $3,630 on note of August 4.
Required:
Journalize the entries to record the transactions. For a compound transactions, if an amount box does not require an entry, leave it blank.
Mar. 8
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
Mar. 31
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
May 7
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Interest Revenue
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Interest Revenue
May 16
Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Payable
Notes Receivable
Accounts Payable
Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Receivable
June 11
Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Payable
Notes Receivable
Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Payable
Notes Receivable
June 29
Accounts Payable
Accounts Receivable
Cash
Interest Expense
Interest Revenue
Notes Receivable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
Unearned Interest
Accounts Receivable
Allowance for Doubtful Accounts
Cash
Interest Expense
Interest Receivable
Interest Revenue
July 26
Accounts Receivable
Bad Debt Expense
Cash
Interest Receivable
Interest Revenue
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Interest Revenue
Unearned Interest
Aug. 4
Accounts Receivable
Bad Debt Expense
Cash
Notes Payable
Notes Receivable
Sales
Accounts Payable
Accounts Receivable
Cash
Interest Revenue
Notes Receivable
Sales
Aug. 14
Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Notes Receivable
Accounts Receivable
Allowance for Doubtful Accounts
Cash
Interest Receivable
Notes Payable
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Interest Revenue
Dec. 2
Accounts Payable
Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Receivable
Accounts Receivable
Allowance for Doubtful Accounts
Cash
Interest Receivable
Notes Payable
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Interest Revenue
Notes Receivable Entries
The following data relate to notes receivable and interest for Owens Co., a financial services company. (All notes are dated as of the day they are received.) Assume 360 days in a year.
Mar. 8. Received a $90,000, 6%, 60-day note on account.
31. Received a $9,600, 7%, 90-day note on account.
May 7. Received $90,900 on note of March 8.
16. Received a $67,200, 8%, 90-day note on account.
June 11. Received a $42,000, 9%, 30-day note on account.
29. Received $9,768 on note of March 31.
July 26. Received $42,315 on note of June 11.
Aug. 4. Received a $3,600, 10%, 30-day note on account.
14. Received $68,544 on note of May 16.
Dec. 2. Received $3,630 on note of August 4.
Required:
Journalize the entries to record the transactions. For a compound transactions, if an amount box does not require an entry, leave it blank.
Mar. 8
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
Mar. 31
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
May 7
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Interest Revenue
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Interest Revenue
May 16
Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Payable
Notes Receivable
Accounts Payable
Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Receivable
June 11
Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Payable
Notes Receivable
Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Payable
Notes Receivable
June 29
Accounts Payable
Accounts Receivable
Cash
Interest Expense
Interest Revenue
Notes Receivable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
Unearned Interest
Accounts Receivable
Allowance for Doubtful Accounts
Cash
Interest Expense
Interest Receivable
Interest Revenue
July 26
Accounts Receivable
Bad Debt Expense
Cash
Interest Receivable
Interest Revenue
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Notes Payable
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Receivable
Interest Revenue
Unearned Interest
Aug. 4
Accounts Receivable
Bad Debt Expense
Cash
Notes Payable
Notes Receivable
Sales
Accounts Payable
Accounts Receivable
Cash
Interest Revenue
Notes Receivable
Sales
Aug. 14
Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Notes Receivable
Accounts Receivable
Allowance for Doubtful Accounts
Cash
Interest Receivable
Notes Payable
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Interest Revenue
Dec. 2
Accounts Payable
Accounts Receivable
Bad Debt Expense
Cash
Interest Revenue
Notes Receivable
Accounts Receivable
Allowance for Doubtful Accounts
Cash
Interest Receivable
Notes Payable
Notes Receivable
Accounts Payable
Accounts Receivable
Cash
Interest Payable
Interest Receivable
Interest Revenue
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Related questions
Problem 9-5A Analyzing and journalizing notes receivable transactions LO C2, C3, P4
The following selected transactions are from Ohlm Company. (Use 360 days a year.)
2016
| Dec. | 16 | Accepted a $10,200, 60-day, 7% note dated this day in granting Danny Todd a time extension on his past-due account receivable. | ||
| 31 | Made an adjusting entry to record the accrued interest on the Todd note. |
2017
| Feb. | 14 | Received Toddâs payment of principal and interest on the note dated December 16. | ||
| Mar. | 2 | Accepted a(n) $7,700, 7%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. | ||
| 17 | Accepted a(n) $2,100, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable. | |||
| Apr. | 16 | Privet dishonored her note when presented for payment. | ||
| May | 31 | Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accounts receivable. | ||
| July | 16 | Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 7%. | ||
| Aug. | 7 | Accepted a(n) $7,700, 90-day, 12% note dated this day in granting a time extension on the past-due account receivable of Mulan Co. | ||
| Sep. | 3 | Accepted a(n) $2,350, 60-day, 9% note dated this day in granting Noah Carson a time extension on his past-due account receivable. | ||
| Nov. | 2 | Received payment of principal plus interest from Carson for the September 3 note. | ||
| Nov. | 5 | Received payment of principal plus interest from Mulan for the August 7 note. | ||
| Dec. | 1 | Wrote off the Privet account against the Allowance for Doubtful Accounts. |
Required:
1-a. First, complete the table below to calculate the interest amount at December 31, 2016.
1-b. Use the calculated value to prepare your journal entries for 2016 transactions.
1-c. First, complete the table below to calculate the interest amounts.
1-d. Use those calculated values to prepare your journal entries for 2017 transactions.
Required 1A
First, complete the table below to calculate the interest amount at December 31, 2016.
|
Required 1B
Use the calculated value to prepare your journal entries for 2016 transactions.
Journal entry worksheet
Accepted a $10,200, 60-day, 7% note dated this day in granting Danny Todd a time extension on his past-due account receivable.
Note: Enter debits before credits.
Made an adjusting entry to record the accrued interest on the Todd note.
Required 1C
First, complete the table below to calculate the interest amounts.
| ||||||||||||||||||||||||||||||
Required 1D
Use those calculated values to prepare your journal entries for 2017 transactions.
Journal entry worksheet
.....
1. Received Toddâs payment of principal and interest on the note dated December 16.
2. Accepted a $7,700, 7%, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co.
3. Accepted a $2,100, 30-day, 7% note dated this day in granting Ava Privet a time extension on her past-due account receivable.
4. Privet dishonored her note when presented for payment.
5. Midnight Co. refused to pay the note that was due to Ohlm Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Midnight Co.âs accounts receivable.
6. Received payment from Midnight Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 7%.
7. Accepted a $7,700, 90-day, 12% note dated this day in granting a time extension on the past-due account receivable of Mulan Co.
8. Accepted a $2,350, 60-day, 9% note dated this day in granting Noah Carson a time extension on his past-due account receivable.
9. Received payment of principal plus interest from Carson for the September 3 note.
10. Received payment of principal plus interest from Mulan for the August 7 note.
11. Wrote off the Privet account against Allowance for Doubtful Accounts.
