The following selected transactions were completed by Zippy Do Co., a supplier o
ID: 2709950 • 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 when you enter the date in the journal. Refer to the Chart of Accounts for exact wording of account titles.
Journalize the entries to record the transactions. If no entry is required, simply skip to the next transaction. Be sure to include the year when you enter the date in the journal. 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 Entry
Date
Description
Post Ref.
Debit
Credit
1
2015 Dec.3
Notes Receivable
36000
Accounts Receivable-Chicago Clothing & Bags Co.
36000
2
2015 Dec.3
Interest Receivable
171.62
Interest Revenue
171.62
3
2015 Dec.3
Interest Revenue
171.62
Income Summary
171.62
4
2016 Mar. 2
Cash
36171.62
Notes Receivable
36000
Interest Receivable
171.62
Date
Description
Post Ref.
Debit
Credit
1
2015 Dec.3
Notes Receivable
36000
Accounts Receivable-Chicago Clothing & Bags Co.
36000
2
2015 Dec.3
Interest Receivable
171.62
Interest Revenue
171.62
3
2015 Dec.3
Interest Revenue
171.62
Income Summary
171.62
4
2016 Mar. 2
Cash
36171.62
Notes Receivable
36000
Interest Receivable
171.62