Required Prepare Tonys Supply Co general journal entries for

Required: Prepare Tony\'s Supply Co. general journal entries for the following transactions:

Solution

Answer:

1 jan Notes Receivable A/C Dr. $15000

             To accounts receivable A/C                $15000

15 Jan Equipment A/C Dr.$10000

              To Short term notes payable A/C      $10000

25 jan Notes Receivable A/C Dr. $30000

             To cash A/C              $30000

31 jan Interest receivable A/C Dr. $1700

                To interest income A/C               $1700

=(15000*10%)=1500+(30000*10%*6/90)=200=1700

25 Apr. Cash A/C Dr.$33000

                  To notes receivable A/c                  $30000

                    To interest receivable A/C              $3000

1 May Cash A/C Dr.$16500

                  To notes receivable A/c                  $15000

                    To interest receivable A/C              $1500

15 Oct Interest expense A/C Dr. $1200 (10000*12%)

           Short term notes payable A/C Dr. $10000

                    To cash A/C                                       $11200