contestada

The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing:
2017 Dec. 7 Received from Unitarian Clothing & Bags Co., on account, a $34,500, 60-day, 12% note dated December 7.
31 Recorded an adjusting entry for accrued interest on the note of December 7.
31 Recorded the closing entry for interest revenue.
2018 Feb. 5 Received payment of note and interest from Unitarian Clothing & Bags Co.
Journalize the entries to record the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.

Respuesta :

The journal entries for the given transactions are given below.

Date   Particulars                                                         Debit       Credit

Dec. 7 Notes receivable        Dr                                    90,000

Accounts receivable-Unitarian Clothing and Bags Co. Cr             90,000

Dec. 31 Interest receivable            Dr                                   600

Interest revenue                       Cr                                                       600

Dec. 31 Interest revenue     Dr                                               600

Retained earnings             Cr                                                                     600

Feb. 5 Cash       Dr                                                         91,500

Notes receivable       Cr                                                                    90000                                            

Interest receivable       Cr                                                                         600

Interest revenue       Cr                                                                         900

Calculations for Interest receivable and interest revenue has to be done.

Interest receivable is 10% and dated December 7, the interest of 24 days has to be calculated.

Interest receivable= 90,000*10%*24/360

Interest receivable=$600

Interest revenue=90,000*10%*36/360

Interest revenue=9000*36/360

Interest revenue=$900

To learn more about Journal entries refer here

https://brainly.com/question/14531346#

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