Ask Question
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)
  1. 17 April, 00:31
    0
    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
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Moses Supply Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers