EX 8-22 Entries for notes receivable, including year-end entries The following s

Question

EX 8-22 Entries for notes receivable, including year-end entries The following selected transactions were completed by Interlocking Devices Co., a supplier of Obj. 6 ow zippers for clothing NOW 20Y7 Dec. 7 31. 31. Received from Unitarian Clothing & Bags Co., on account, a $75,000, 60-day, 3% note dated December 7. Recorded an adjusting entry for accrued interest on the note of December 7. Recorded the closing entry for interest revenue. 20Y8 Feb. 5. Received payment of note and interest from Unitarian Clothing& Bags Co. Journalize the entries to record the transactions.

Explanation / Answer

07-Dec-17 Notes receivable 75000                 Cash 75000 31-Dec-17 Interest receivable 150 (75000*3%*24/360)               Interest revenue 150 31-Dec-17 Interest revenue 150                Income summary 150 05-Feb-18 Cash 75375         Interest receivable 150         Interest revenue 225         Notes receivable 75000

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