I'm in extreme need of help for an accounting class that I am taking. To say I'm bad in accounting is an understatement, but here goes the question that I need help with.

"Included in Martinez Company’s December 31 trial balance is a note receivable of $10,000. The note is a 4-month, 12% note dated October 1. Prepare Martinez’s December 31 adjusting entry to record $300 of accrued interest, and the February 1 journal entry to record receipt of $10,400 from the borrower." How would I do this?? :(

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To say I'm bad in accounting is an understatement

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LOL. I've been tutoring accounting for 13 years -- you have any idea how many times I've heard this. :p (But thanks for the laugh -- I needed it.)

You missed your adjusting entries somewhere, which isn't a big surprise cause most people memorize them, rather than getting the concepts behind them, and then they come back to bite you in the rear end later. So... we can't really make up a whole chapter, but let's see how far we can get.

Accrual -- something that is to be paid later. You use them a lot. Specifically, the interest this company will pay is an expense, so it's an accrued expense. Since accruals are things to be paid later, this means you have an expense that has been incurred, but will be paid later (specifically Feb but irrelevant). It's been "incurred" because three months of the loan have gone by and technically belongs to this year. In fact, technically, that interest is accruing every day, but recording it every day is silly and time-consuming, so they're just having you record the portion that belongs to this year at the end of the year. Where do we put things that will be paid later?

February is a little trickier, especially since I'm trying not to do your work for you, but rather lead you -- and we don't have that answer for Dec yet. Do you understand where the 10,400 comes from? Part of it's the note itself. If it's getting paid off, what do you need to do with the note? And what is the 400? Where is 300 of it?

Try to think about that and get done whatever you can. Post it, and me or whoever can see how you did and lead you from there.

No ansher

I wish someone can tell

Do you have the same problem? I already gave some explanation of this. If you have specific questions, ask them, or show us your attempts at this. We are not here to just answer the homework for you, but rather to guide and help you understand.

At 1st October 2005, the following balances were brought forward in the ledger accounts of XY.
Rent payable account Dr $1000, electricity account cr $800, interest receivables account dr $300 and allowance for doubtful debt account cr $4800.
You are told the following:
Rent is payable quarterly in advance on the last day of November, febraury. May and August at the rate of %6,000 per annum.

What is your question? And why are you adding on an old thread. You need to start your own thread with your question with what you have tried, so we can help you.

Bills receivable 6000
Errors she recorded a 2000 bills paybles as a bills receivable
What is ythe effect on trail balance

Your Liabilities are overstated and your Assets are understated.

You have to prepare a general journal, but first you must know the errors that affect the trial balance and those that do not affect the trial balace.