Mexico Supply Co

Please see the attached file.

1 Journal entries for the transactions of 2005 and collection of Hanson's Note in 2006.
2 Detailed working for each Note Receivable's accrued interest of 2005 and final Note collection with interest in 2006 in a classified table with full calculations.

Mexico Supply company

Journal entries

Date Details Ref Debit Credit
2005
Nov 1 Note Receivable
Cash
(To record cash loan given to Norma Hanson against 10% one year Note receivable ) 18000
18000
Dec 11 Note Receivable
Sales Revenue
(To record goods sold to Countryman inc against 90 days 8% Note receivable) 6750
6750
Dec 16 Note Receivable
Account Receivable
(To record six months 9%Note receivable received from Bob shabo in exchange of his outstanding account) 4000

4000
Dec 31 Interest Receivable
Interest revenue
(To record interest accrued on Note receivable $300 for 2 months,$30 for 20 days and $15 for 15 days from Norma Hasnson,Country man ltd and Bob shabo respectively) 345
345
Journal entry for collection of Hanson's Note receivable at its maturity in 2006.
2006
Nov 1 Cash
Note Receivable
Interest Receivable
Interest Revenue
(To record collection of Note receivable along with accrued interest for two months of 2005 and regular interest of 10 months for 2006 for) 19800
18000
300
1500
Working for accrued Interest calculation:

Details of Note Receivable Year & period Principal amount Period of accrued interest & Rate Amount of interest accrued
Norma Hanson 2005-Nov 1 to Dec 31 18000 Two months
10% 18000X.01X2/12=$300
Countryman inc 2005-11th Dec to 31 Dec 6750 20 days
8% 6750*.08*20/360=$30
Bob Shabo 2005-16th Dec to 31st Dec $4000 15 days @9% 4000*.09*15/360=$15
Norma Hanson 2006-1st Jan to Oct 31 $18000 10 months @10% 18000*.10*10/12=$1500