Moses Supply Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 16 Loaned $60,000 cash to C. Bohr on a 12-month, 7% note. Sold goods to K. R. Pine, Inc., receiving a $3,600, 90-day, 8% note. Received a $12,000, 180-day, 9% note to settle an open account from A. Murdock. 31 Accrued interest revenue on all notes receivable Instructions Journalize the transactions for Moses Supply Co. (Omit cost of goods sold entries.)

Question

Business

Abbey

16 April, 22:05

Moses Supply Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. Nov. 1 Dec. 11 16 Loaned $60,000 cash to C. Bohr on a 12-month, 7% note. Sold goods to K. R. Pine, Inc., receiving a $3,600, 90-day, 8% note. Received a $12,000, 180-day, 9% note to settle an open account from A. Murdock. 31 Accrued interest revenue on all notes receivable Instructions Journalize the transactions for Moses Supply Co. (Omit cost of goods sold entries.)

+1

Answers (1)

Know the Answer?

Jaidyn Whitney · Answer 1

The following journal entries are to be passed in the books of Moses Supply co. for the year.

Explanation:

date particulars and details debit credit

nov 1 Notes receivable 60000

cash 60000

Dec 11 Notes receiavble 3600

sales 3600

Dec 16 Notes receivable 12000

Accounst receivable 12000

Dec 31 Interest receivable 760

Interest revenue 760

Interest calculation is as follows:

Nov 1 Interest = $60000 multiply 7% multiply 2 by 12 = $700

Dec 11 Interest = $3600 multiply 8% multiply 20by 365 = $16

Dec 16 Interest = $12000 multiply 9% multiply 15 by 365 = $44

Total = $760