291292 tice Assignment Gradebook ORION ment CALCULATOR FULL

291/292) tice Assignment Gradebook ORION ment CALCULATOR FULL SCREEN PRINTER VERSION BACK Crane Company has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. (Omit cost of goods sold entries.) Nov. 1 Loaned $52,200 cash to C. Bohr on a 12-month, 7% note. Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $1,800, 90-day, 8% note. Dec. 16 Received a $4,800, 180-day, 40% note to settle an open account from A. Murdock. Dec. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Crane Company (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Tides and Explanation Debit Credit SHOW LIST OF ACCOUNTS Policy 1 2000-20 All Rights Reserved. A Division of Joho Wiley &Sons; inc. Version 4.24.6.2

Solution

Solution: Date Account Titles and Explanation Debit Credit Nov. 1 Notes Receivable 52,200 Cash 52,200 Dec. 11 Notes Receivable 1,800 Sales Revenue 1,800 Dec. 16 Notes Receivable 4,800 Accounts Receivable 4,800 Dec. 31 Interest Receivable 637 Interest Revenue 637 Working Notes: Interest Receivable = note amount x rate x time till Dec. 31st Amount Bohr =52,200 x 7% x 2/12 $609 a Pine =1,800 x 8% x 20/360 $8 b Murdock =4,800 x 10% x 15/360 $20 c Total $637 d=a+b+c Please feel free to ask if anything about above solution in comment section of the question.