Record the following transactions in the journal of TLC Comp

Record the following transactions in the journal of TLC Company, Inc. Explanations are not required. Use a 360-day year for interest computations and round to the nearest dollar. (Click the icon to view the transactions,) (Record debits first, then credits. Exclude explanations from any journal entries.)

Solution

12% Note a/c

To Account payable a/c

$6,000

$6,000

Accrued interest a/c

To Interst on 12% note a/c

[$6,000 x 12% x (13 days ÷ 360)]

$26

Cash a/c

To 12% notes a/c

To Accrued interest a/c

$6,120

$6,000

$120

11% note a/c

To cash a/c

$9,000

$9,000

14% note a/c

To Accounts receivable a/c

$1,000

$1,000

Cash a/c

To 11% note a/c

To Accrued interest a/c

[$9,000 x 11% x (6 months ÷ 12]

$9,495

$9,000

$495

Accrued interest a/c

To Interest on 14% note a/c

[$1,000 x 14% x 62 days ÷ 360)]

$24

$24

Hope this is useful and thank you!!!!!!

Date	General Journal	Debit	Credit
Dec/19/2015	12% Note a/c To Account payable a/c	$6,000	$6,000
Dec/31/2015	Accrued interest a/c To Interst on 12% note a/c [$6,000 x 12% x (13 days ÷ 360)]	$26	$26
Feb/17/2016	Cash a/c To 12% notes a/c To Accrued interest a/c	$6,120	$6,000 $120
Jun/01/2016	11% note a/c To cash a/c	$9,000	$9,000
Oct/31/2016	14% note a/c To Accounts receivable a/c	$1,000	$1,000
Dec/01/2016	Cash a/c To 11% note a/c To Accrued interest a/c [$9,000 x 11% x (6 months ÷ 12]	$9,495	$9,000 $495
Dec/31/2016	Accrued interest a/c To Interest on 14% note a/c [$1,000 x 14% x 62 days ÷ 360)]	$24	$24