Included in Gonzalez Company’s December 31 trial balance is a note receivable of
ID: 2493578 • Letter: I
Question
Included in Gonzalez Company’s December 31 trial balance is a note receivable of $13,560. The note is a 4-month, 10% note dated October 1. Prepare Gonzalez’s December 31 adjusting entry to record $339 of accrued interest, and the February 1 journal entry to record receipt of $14,012 from the borrower. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit CreditExplanation / Answer
Journal entry
Date
accounts
debit
Credit
Dec 31
Interest receivable
339
To interest income
339
Feb 1
cash
14,012
To interest receivable
339
To notes receivable
13,560
Date
accounts
debit
Credit
Dec 31
Interest receivable
339
To interest income
339
Feb 1
cash
14,012
To interest receivable
339
To notes receivable
13,560