Purchase Solution

Interest-Bearing Note Receivable

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution
Solution Summary

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

Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

View More Free Quizzes
Related BrainMass Solutions

  • Notes receivable

    an interest-bearing note receivable from the customer.

  • Notes Receivable - Interest-Bearing Notes

    563593 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.

  • Note Payable and Interest Receivable

    Note: First installment of principal amount is due $120000 on 2nd Jan 2007.Amount of Deposit accepted in Non-interest bearing account is not relevant here for the calculation of interest on Note Receivable from Gore.

  • Journal Entries and T-accounts for the DeCort Company

    The company holds a note receivable for $4000. The note is interest bearing. The interest will be received when the note matures. The note is one-year note receivable made on June 30, bearing an interest of % simple interest. 4.

  • Aging Accounts Receivable & Imputed Interest

    The cash selling price is found by taking the present value of the non-interest bearing note. The present value of $1 for n=3 & r= 12% is 0.71178. So the cash value is $275,000 * .071178 = $195,739.50.

  • Notes Receivable - entries

    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 receivable Since the note is an interest bearing note, we need to accure the interest for each month b

  • Disclosures in Financial Statements

    500633 Disclosures in Financial Statements On November 1, year 2, Davis Co. discounted with recourse at 10%, a one-year, non-interest bearing, 20,500 note receivable maturing on January 31, year 3.

  • Interest receivable on loan

    134072 Interest receivable on loan On June 1, 2004, Vent Corp. loaned Irvin $400,000 on a 12% note, payable in five annual installments of $80,000 beginning January 2, 2005.

  • Clarey, Inc: Prepare financial schedule

    Payments are to be made annually on April 1st for five years plus interest. 3. On January 1, 2006, Clarey exchanged equipment for a $400,000 zero-interest-bearing note due on January 1, 2009.

View More Related Solutions