Mendosa Company closes its books monthly. On September 30, selected ledger accou
ID: 2384966 • Letter: M
Question
Mendosa Company closes its books monthly. On September 30, selected ledger account balances are:Notes receivable $33,000
Interest receivable $170
Notes Receivable include the following.
Date Maker Face Term Interest
Aug. 16 Chang Inc. $8,000 60 days 8%
Aug. 25 Hughey Co. 9,000 60 days 10%
Sept. 30 Skinner Corp. 16,000 6 months 9%
Interest is computed using a 360-day year. During October, the following transactions were completed.
Enter the balances at October 1 in the receivable accounts. Post the entries to all of the receivable accounts. (If answer is zero, please enter 0. Do not leave any fields blank.)
Show the balance sheet presentation of the receivable accounts at October 31.
Explanation / Answer
To find the interest for Date Maker Face Term Interest use the following formula Interest = (Principal)(Interest Rate)(Time in Days) or I = PRT You then have to enter all debits and credits using the following form layout Date - Account Title and Description - Debit - Credit Interest Receivable would be a debit, Revenues would be credits. You wrote the following transactions were completed but I don't see any there so I don't know what else you have.