8-10

Exercise 8-10

Reeves Supply Co. has the following transactions related to notes receivable during the last 2 months of 2014.

Nov. 1

Loaned $15,000 cash to Norma Jeanne on a 1-year, 9% note.

Dec. 11

Sold goods to Bob Sharbo, Inc., receiving a $6,750, 90-day, 8% note.

16

Received a $4,400, 6-month, 12% note in exchange for Richard Russo’s outstanding accounts receivable.

31

Accrued interest revenue on all notes receivable.

(a) Journalize the transactions for Reeves Supply Co.  (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275.)

Date

Account Titles and Explanation

Debit

Credit

Nov. 1

Notes Receiva

15000

cash

15000

Dec. 11

Notes Receiva

6750

Sales Revenu

6750

Dec. 16

Notes Receiva

4400

Accounts Rec

4400

Dec. 31

Interest Receiv

277

Interest Reven

277

(b) Record the collection of the Jeanne note at its maturity in 2015.  (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275.)

Date

Account Titles and Explanation

Debit

Credit