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    slh6582's Avatar
    slh6582 Posts: 22, Reputation: 1
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    #1

    Jun 14, 2007, 08:50 PM
    Managerial-notes receivable
    Dekon Company’s December 31 year-end unadjusted trial balance shows an $8,000 balance in Notes
    Receivable. This balance is from one 6% note dated December 1, with a period of 45 days. Prepare
    Journal entries for December 31 and for the note’s maturity date assuming it is honored.

    Here is what I got, so can someone please let me know what needs to be changed or if I am right? Thanks

    Dec. 31 Debit Interest Receivable 40
    Credit interest revenue 40


    Jan. 15 Debit Cash 8480
    Credit Notes Receivable 8,000
    Credit Interest revenue 440
    Credit Interest Receivable 40
    To record full payment of note
    slh6582's Avatar
    slh6582 Posts: 22, Reputation: 1
    New Member
    		  
    #2

    Jun 14, 2007, 08:59 PM
    Quote Originally Posted by slh6582
    Dekon Company’s December 31 year-end unadjusted trial balance shows an $8,000 balance in Notes
    Receivable. This balance is from one 6% note dated December 1, with a period of 45 days. Prepare
    journal entries for December 31 and for the note’s maturity date assuming it is honored.

    Here is what I got, so can someone please let me know what needs to be changed or if I am right? Thanks

    Dec. 31 Debit Interest Receivable 40
    Credit interest revenue 40


    Jan. 15 Debit Cash 8480
    Credit Notes Receivable 8,000
    Credit Interest revenue 440
    Credit Interest Receivable 40
    To record full payment of note
    Let me change that up a bit... On Jan 15 cash should be debited 8060 and interest revenue 20, right?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #3

    Jun 14, 2007, 09:28 PM
    You are correct on the second posting.

    Dr. Cash 8,060
    Cr. Interest Rec 40
    Cr. Interest Revenue 20
    Cr. Notes Rec 8,000
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