Record the following transactions for Redeker Co in the gene

Record the following transactions for Redeker Co. in the general journal

Record the following transactions for Redeker Co. in the general journal. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 2017 May 1 Received a $39,900, 12 months, 10% note in exchange for Mark Chamber\'s outstanding accounts receivable. Dec. 31 Accrued interest on the Chamber note. Dec. 31 Closed the interest revenue account. 2018 May 1 Received principal plus interest on the Chamber note. (No interest has been accrued in 2018.) Date Account Titles and Explanation Debit Credit (To record accrued interest on note.) (To close the interest revenue account.)

Solution

Date Account titles and explanation Debit Credit May 1, 2017 Notes receivable $39,900 Accounts receivable $39,900 Dec. 31, 2017 Interest receivable $2,660 Interest revenue($39,900 x 10% x 8/12) $2,660 Dec. 31, 2017 Interest revenue $2,660 Income summary $2,660 May 1, 2018 Cash $43,890 Notes receivable $39,900 Interest receivable $2,660 Interest revenue($39,900 x 10% x 4/12) $1,330