The following selected transactions were completed by Interlocking Devices Co.,
ID: 2564140 • Letter: T
Question
The following selected transactions were completed by Interlocking Devices 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. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
CHART OF ACCOUNTSInterlocking Devices Co.General Ledger
Interest Expense
Journalize the entries to record the transactions for the year 2017. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
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Journalize the entries to record the transactions for the year 2018. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
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2017 Dec. 7 Received from Unitarian Clothing & Bags Co., on account, a $75,000, 60-day, 3% note dated December 7. 31 Recorded an adjusting entry for accrued interest on the note of December 7. 31 Recorded the closing entry for interest revenue. 2018 Feb. 5 Received payment of note and interest from Unitarian Clothing & Bags Co.Explanation / Answer
Date Description Post Ref Debit Credit Assets Liabilities Equity 7-Dec Notes receivable Dr. 75000 75000 Accounts receivable 75000 -75000 31-Dec Interest receivable Dr. 150 150 Interest revenue (75000*3%*24/360) 150 150 31-Dec Interest revenue Account Dr. 150 -150 Income Summary 150 150 5-Feb Cash Account Dr. 75375 75375 Notes receivable Account 75000 -75000 Interest Receivable Account 150 -150 Interest revenue account (75000*3%*36/360) 225 225