Oriole Company 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. (Omit cost of goods sold entries.) Nov. 1 Loaned $52,200 cash to C. Bohr on a 12-month, 7% note.

Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $1,800, 90-day, 8% note.

Dec. 16 Received a $4,800, 180-day, 10% note to settle an open account from A. Murdock.

Dec. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Crane Company

See explanation

Explanation:

Nov. 1 Notes receivable - C. Bohr Debit $52,200

Cash Credit $52,200

To record the loan provided to C. Bohr issuing a 7%, 12-month note.

Dec. 11 Notes receivable - K. R. Pine Debit $1,800

Sales revenue Credit $1,800

To record the sales revenue by issuing a 8%, 90-day note.

Dec. 16 Notes receivable - A. Murdock Debit $4,800

Accounts receivable - A. Murdock Credit $4,800

To record the settlement of an open account by issuing a 180-day, 10% note.

Dec. 31 Interest Receivable Debit $681 (Note - 1)

Interest Revenue Credit $681

To record the interest revenue accrued on December 31.

Calculation:

November 1 Interest from C. Bohr = $52,200 * 7% * (2:12) = $609

December 11 Interest from K. R. Pine = $1,800 * 8% * (20:90) = $32

December 16 Interest from A. Murdock = $4,800 * 10% * (15 : 180) = $40

Total Interest = $681