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LULVIS U Neoserra Nevada 11/0252Fmgmiddleware252 Hootsuite Nevada SBDC - You Instagram (4) Home / Twitter Nevada SSDC Intra Saved RecRoom Equipment Company received an $8,600, six-month, 6 percent note to settle an $8
LULVIS U Neoserra Nevada 11/0252Fmgmiddleware252 Hootsuite Nevada SBDC - You Instagram (4) Home / Twitter Nevada SSDC Intra Saved RecRoom Equipment Company received an $8,600, six-month, 6 percent note to settle an $8.600 unpaid balance owed by a customer. a The note is accepted by RecRoom on November 1, causing the company to increase its Notes Receivable and decrease its Accounts Receivable. b. RecRoom adjusts its records for interest earned to its December 31 year-end. c RecRoom receives the interest on the note's maturity date. d. RecRoom receives the principal on the note's maturity date Prepare journal entries to record the above transactions for RecRoom. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet
Expert Solution
Journal entries
| Date | Account Titles and Explanation | Debit | Credit |
| 01-Nov | Note receivable | $8,600 | |
| To Accounts Receivable | $8,600 | ||
| (Entry to recored receipt of note) | |||
| 31-Dec | Interest Receivable | $86 | |
| To Interest Revenue | $86 | ||
| (8,600*6%*2months/12monts) | |||
| (To record interest accrued for 2 months on 31 December) | |||
| 30-Apr | Cash ($86+$172) | $258 | |
| To Interest receivable (for 2 month already accrued) | $ 86 | ||
| To Interest revenue (for 4 month Jan- April) | $172 | ||
| (To record interest at maturity) (8,600*6%*4/12) | |||
| 30-Apr | Cash | $8,600 | |
| To Note Receivable | $8,600 | ||
| (To record amount received on maturity) |
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