Marathon Running Shoes reports the following: (Click the icon to view the inform

Question

Marathon Running Shoes reports the following: (Click the icon to view the information.) Journalize all entries required for Marathon Running Shoes. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Jan. 6, 2018: Recorded credit sales of $105,000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit 2018 Jan. 6 Jan. 6 Jul. 1, 2018: Loaned $18,000 to Jess Pinket, an executive with the company, on a one-year, 7% note. Date Accounts and Explanation Debit Credit 2018 Jul. 1

Explanation / Answer

Journal entry :

Date account & explanation debit credit Jan 6 Account receivable 105000 Sales revenue 105000 (To record credit sales) Jul 1 Notes receivable 18000 Cash 18000 (To record loan given) Dec 31 Interest receivable (18000*7%*6/12) 630 Interest revenue 630 (To record accured interest) Jul 1 Cash 19260 Notes receivable 18000 Interest receivable 630 Interest revenue 630 (To record maturity)

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