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    Notes Receivable: interest computations and journal entries

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    Dekon Company's December 31 year-end unadjusted trial balance shows an $8,000 balance is Notes Receivable. This balance is from one 6% note dated December 1, with a period of 45 days. Prepare journal entries for December 31 and for the note's maturity date assuming it is honored.

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    At December 31, the interest receivable as of that date should be accrued for the presentation of accrual-based financial statements.


    December 31: ...

    Solution Summary

    The solution shows the computation of interest receivable for two accounting periods, and then lists the journal entries in proper format.