Instructions The following selected transactions were completed by Zippy Do Co.,
ID: 2496628 • Letter: I
Question
Instructions
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.
Chart of Accounts
CHART OF ACCOUNTSZippy Do Co.General Ledger
Interest Expense
Journal
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.
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JOURNAL
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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
Journal Entries
Date Description Post Ref Debit Credit 1 Dec 3 Notes Receivable A/c Dr $36,000 To Accounts Receivable-Chicago Clothing & Bags Co. $36,000 2 Dec 31 Interest Receivable A/c Dr [{(36000*6%)*3/12}*28/90] $168 To Interest Revenue $168 3 Dec 31 Interest Revenue$168 To Income Summary $168 4 Mar 2 Cash A/c Dr $36,540 To Interest Receivable A/c [{(36000*6%)*3/12} $540 To Notes Receivable A/c $36,000