HANDOUT 4 NOTES RECEIVABLE On April 1, Year 1, Vandelay Industries loans a $10,000 note...
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HANDOUT 4 NOTES RECEIVABLE On April 1, Year 1, Vandelay Industries loans a $10,000 note to a customer opening a new store. The note, which bears 10% annual interest, becomes due on March 31, Year 2. Prepare the required journal entry. 1-Apr Notes Receivable 10,000 Cash 10,000 Ensure the equation still balances and debits = credits Assets Liabilities + Stockholders' Equity + Note Receivable (A)- + Cash (A) - On December 31, Year 1, Vandelay accrued interest for the portion of the year that the note was outstanding. Prepare the required adjusting journal entry. Ensure the equation still balances and debits = credits Assets Liabilities Stockholders' Equity + Interest Receivable (A) - Interest Revenue (R, SE) + On March 31, Year 2, Vandelay received all interest and principal for the note. Prepare the required journal entry for the receipt of interest. Ensure the equation still balances and debits = credits Assets Liabilities Stockholders' Equity + Interest Receivable (A)- Interest Revenue (R, SE) + Cash account omitted Prepare the required joumal entry for the receipt of principal Ensure the equation still balances and debits = credits Assets Liabilities Stockholders' Equity + Note Receivable (A)- [Cash Account omited)
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