question prepare journal entries for notes receivable akron corporation engaged in t 4277458
Question
Prepare Journal Entries for Notes Receivable
Akron Corporation engaged in the following transactions involving promissory notes in 20×1 and 20×2.
Journalize these transactions in the journal provided. Explanations are not needed. Akron records adjusting entries monthly.
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20×1 |
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Sept. 1 |
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Sold land to Marge Bailey for $180,000. A 6-month, 9 percent note was received in exchange. Cost of the land was $180,000. |
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Nov. 1 |
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Received a 30-day, non-interest bearing note from Fred Hansen in settlement of his accounts receivable of $2,500. |
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Dec. 1 |
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Fred Hansen dishonored his note issued 30 days earlier. |
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Dec. 31 |
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Recorded accrued interest for December on the note received from Marge Bailey. |
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20×2 |
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Mar. 1 |
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Received payment in full from Marge Bailey. Assume that all interest has already been accrued to the end of February but no cash receipt has been recorded. |