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Moses Supply Co. 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. Nov. 1 Dec. 11 16 Loaned $60,000 cash to C. Bohr on a 12-month, 7% note. Sold goods to K. R. Pine, Inc., receiving a $3,600, 90-day, 8% note. Received a $12,000, 180-day, 9% note to settle an open account from A. Murdock. 31 Accrued interest revenue on all notes receivable Instructions Journalize the transactions for Moses Supply Co. (Omit cost of goods sold entries.)

Respuesta :

The following journal entries are to be passed in the books of Moses Supply co. for the year.

Explanation:

date                particulars and details                  debit              credit

nov 1            Notes receivable                              60000

                      cash                                                                     60000

Dec 11           Notes receiavble                             3600

                      sales                                                                  3600

Dec 16        Notes receivable                            12000

                    Accounst receivable                                              12000

Dec 31        Interest receivable                             760

                      Interest revenue                                                     760

Interest calculation is as follows:

Nov 1 Interest = $60000 multiply 7% multiply 2 by 12 = $700

Dec 11 Interest = $3600 multiply 8% multiply 20by 365 = $16

Dec 16 Interest = $12000 multiply 9% multiply 15 by 365 = $44

                                     Total                                                 = $760

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