Question

Show the balance sheet presentation of the receivable accountsat October 31Enter the balances at October 1 in the receivableaccounts. Post the entries to all of the receivable accounts

Journalize the October transactions and the October 31 adjustingentry for accrued interest receivable.Farwell Company closes itsbooks monthly. On September 30, selected ledger account balancesare:

Notes Receivable

 

$36,000

Interest Receivable

 

243

 

Notes Receivable include the following.

Date

 

Maker

 

Face

 

Term

 

Interest

Aug. 16

 

K. Goza Inc.

 

$ 10,800

 

60 days

 

10%

Aug. 25

 

Holt Co.

 

12,000

 

60 days

 

9%

Sept. 30

 

Noblitt Corp.

 

13,200

 

6 months

 

11%

 

Interest is computed using a 360-day year. During October, thefollowing transactions were completed.

Oct. 7

 

Made sales of $6,900 on Farwell credit cards.

12

 

Made sales of $900 on MasterCard credit cards. The credit cardservice charge is 2%.

15

 

Added $460 to Farwell customer balances for finance charges onunpaid balances.

15

 

Received payment in full from K. Goza Inc. on the amountdue.

24

 

Received notice that the Holt note has been dishonored. (Assumethat Holt is expected to pay in the future.)

 



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *