fill the charts Assignment Exercise 814 Concord Company had

fill the charts

Assignment Exercise 8-14 Concord Company had the following select transactions. Apr. 1, 2019 Accepted Goodwin Company\'s 12-month, 10% note in settlement of a $79,600 account receivable. July 1, 2019 Loaned $81,600 cash to Thomas Slocombe on a 9-month, 8% note. Dec. 31, 2019 Accrued interest on all notes receivable Apr. 1, 2020 Received principal plus interest on the Goodwin note. Apr. 1, 2020 Th omas Slocombe dishonored its note: Concord expects it will eventually collect. Prepare journal entries to record the transactions. Concord prepares adjusting entries once a ye order presented in the problem.) ar on December 31. (Credit a Date Account Titles and Explanation Debit Credit (To record interst on Goodwin Co note.) All Rights Reserved. A Division of 1ohn Wiley & Sons Ins

Solution

Date Account Titles and Explaination Debit Credit Apr 1 2019 Notes Receivable $ 79,600 Accounts Receivable $ 79,600 Jul 1 2019 Notes Receivable $ 81,600 Cash $ 81,600 Dec 31 2019 Interest Receivable $   5,970 Interest Revenue $   5,970 (To record Interest on Godwin Co. Note) Dec 31 2019 Interest Receivable $   3,264 Interest Revenue $   3,264 (To record Interest on Solocombe Co. Note) Apr 1 2020 Cash $ 87,560 Notes Receivable $ 79,600 Interest Revenue $   1,990 Interest Receivable $   5,970 (To record collection of Godwin Note) Apr 1 2020 Accounts Receivable $ 86,496 Notes Receivable $ 81,600 Interest Revenue $   1,632 Interest Receivable $   3,264 (To record Note Dishonored) Workings: Interest Receivable at Dec. 31,2019 Goodwin Note ($79,600 x 10% x 9/12) = $   5,970 Slocombe Note ($81,600 x 8% x 6/12) = $   3,264 Remaining 3 months Interest Goodwin Note ($79,600 x 10% x 3/12) = $   1,990 Slocombe Note ($81,600 x 8% x 3/12) = $   1,632