On March 1 Jane Corporation accepted a 60day 33 21900 note r

On March 1, Jane Corporation accepted a 60-day, 33?%, $21,900 note receivable from J. Peters in exchange for his account receivable

A. Journalize the transaction on March 1.

B. Journalize the adjusting entry needed on March 31 to accrue interest revenue. Round to the nearest dollar.

Solution

Journal Entries Date Accounts title and explanation Debit $ Credit $ 1-Mar Notes receivable Account Dr. 21900      Accounts receivable 21900 31-Mar Interest receivable Account Dr. 594       Interest revenue Account (21900*33%*30/365) 594