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Notes Receivable - entries

Prepare journal entries for the following transactions:

a. On November 1, Year 1, Kuhner Co. received a $1,000 note receivable with a 90-day maturity and a 12% interest rate in exchange for an outstanding account receivable of the same face amount.

b. Assume Kuhner Co. closes its books on a monthly basis. Prepare any adjusting journal entries necessary at November 30, Year 1.

c. Prepare any adjusting journal entries necessary at December 31, Year 1

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a. The entry on receipt of note is
Notes Receivable Dr 1,000
Accounts Receivable Cr 1,000

The accounts receivable is converted to a note ...

Solution Summary

The solution explains the entries needed for notes receivable transactions

$2.19