The following selected transactions were completed by Zippy Do Co., a supplier o
ID: 2477893 • Letter: T
Question
The following selected transactions were completed by Zippy Do Co., a supplier of zippers for clothing:
Journalize the entries to record the transactions. If no entry is required, simply skip to the next transaction. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles.
2015 Dec. 3 Received from Chicago Clothing & Bags Co., on account, a $36,000, 90-day, 6% note dated December 3. 31 Recorded an adjusting entry for accrued interest on the note of December 3. 31 Recorded the closing entry for interest revenue. 2016 Mar. 2 Received payment of note and interest from Chicago Clothing & Bags Co.Explanation / Answer
Date Title Debit credit dec 3 Note receivable 36000 Accounts receivable 36000 [being note collected] dec 31 Interest receivable 174 Interest revenue (36000 *.06* 29/360] 174 [being Accrued interest recorded] dec 31 Interest revenue 174 Income statement 174 [being interest revenue closed] mar 2 2016 Cash 36534.90 Interest revenue [36000 * .06 *62/365 366.90 Interest receivable 168 Note receivable 36000