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Record the following Transactions for Taylor Co. in a general journal.
2014
May 1 received a $7500, 1-year, 9% note in exchange for Len Monroe;s outstanding account
receivable.
Dec. 31 Accrued interest on the Monroe note.
Dec. 31 closed the interest revenue account.
2015
May 1 recieved principal plus interest on the Monroe note. (No interest has been accrued in
2015.)
Solution
2014
May 1
received a $7500, 1-year, 9% note in exchange for Len Monroe;s outstanding account receivable.
Dr Notes Receivable 7,500
Cr Accounts Receivable 7,500
Dec. 31
Accrued interest on the Gonzalez note.
7,500 * 9% * 8/12 = 450
Dr Interest Receivable 450
Cr Interest Revenue 450
Dec 31
Closed the interest revenue account.
Dr Interest Revenue 450
Cr Income Summary 450
2015
May 1
recieved principal plus interest on the Monroe note. (No interest has been accrued in 2015.)
7,500 * 1.09 = 8,175
Dr Cash 8,175
Cr Interest Receivable 450
Cr Interest Revenue 225 (7,500 * 9% * 4/12)
Cr Notes Receivable 7,500

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Record the following Transactions for Taylor Co- in a general journal-.docx

  • 1. Record the following Transactions for Taylor Co. in a general journal. 2014 May 1 received a $7500, 1-year, 9% note in exchange for Len Monroe;s outstanding account receivable. Dec. 31 Accrued interest on the Monroe note. Dec. 31 closed the interest revenue account. 2015 May 1 recieved principal plus interest on the Monroe note. (No interest has been accrued in 2015.) Solution 2014 May 1 received a $7500, 1-year, 9% note in exchange for Len Monroe;s outstanding account receivable. Dr Notes Receivable 7,500 Cr Accounts Receivable 7,500 Dec. 31 Accrued interest on the Gonzalez note. 7,500 * 9% * 8/12 = 450 Dr Interest Receivable 450 Cr Interest Revenue 450
  • 2. Dec 31 Closed the interest revenue account. Dr Interest Revenue 450 Cr Income Summary 450 2015 May 1 recieved principal plus interest on the Monroe note. (No interest has been accrued in 2015.) 7,500 * 1.09 = 8,175 Dr Cash 8,175 Cr Interest Receivable 450 Cr Interest Revenue 225 (7,500 * 9% * 4/12) Cr Notes Receivable 7,500