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Interest-Bearing Note Receivable

Johnson Ltd completed the following transaction during 2014 and 2015. Prepare journal entries to record these transactions.

October 14 Sold merchandise to Bruce Company, receiving a 60-day, 9% note for $10,000.
November 16 Sold merchandise to Marine Company receiving a 72-day, 8% note for $9,100.
December 13 Received amount due from Bruce Company.
December 31 Accrued interest on the Marine Company note.

January 27 Received amount due from Marine Company.

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Solution Summary

Showing journal entries to record Interest-bearing Notes Receivable, Interest Accrued, and Interest Earned.