Journalize Transactions for Mexico Supply Co.
Not what you're looking for?
Mexico Supply Co. has the following transactions related to notes receivable during the last 2 months of 2005.
Nov. 1 Loaned $18,000 cash to Norma Hanson on a 1-year, 10% note.
Dec. 11 Sold goods to John Countryman, Inc., receiving a $6,750, 90-day, 8% note.
16 Received a $4,000, 6-month, 9% note in exchange for Bob Shabo's outstanding accounts receivable.
31 Accrued interest revenue on all notes receivable.
Instructions
(a) Journalize the transactions for Mexico Supply Co.
(b) Record the collection of the Hanson note at its maturity in 2006.
Purchase this Solution
Solution Summary
This solution journalizes the transactions for Mexico Supply Co. and records the collection of the Hanson note at its maturity in 2006.
Solution Preview
Please see the attached file.
1 Journal entries for the transactions of 2005 and collection of Hanson's Note in 2006.
2 Detailed working for each Note Receivable's accrued interest of 2005 and final Note collection with interest in 2006 in a classified table with full calculations.
Mexico Supply company
Journal entries
Date Details Ref Debit Credit
2005
Nov 1 Note Receivable
Cash
(To record cash loan given to Norma Hanson against 10% ...
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.