Explore BrainMass
Share

Interest-Bearing Note Receivable

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

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

2014
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.

2015
January 27 Received amount due from Marine Company.

© BrainMass Inc. brainmass.com October 17, 2018, 12:03 pm ad1c9bdddf
https://brainmass.com/business/notes-receivable/interest-bearing-note-receivable-563597

Solution Summary

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

$2.19
Similar Posting

Notes Receivable - Interest-Bearing Notes

Martin Manufacturing held three interest-bearing notes during 2014 and 2015. For each note, determine the following items.
a. The maturity date
b. The maturity value
c. Interest revenue to be reported on December 31, 2014

Note 1 - issued September 25, 2014, $15,000, 10%, 60 days
Note 2 - issued November 20, 2014, $25,000, 12%. 90 days
Note 3 - issued December 30, 2014, 14,000, 9%, 30 days

View Full Posting Details