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Joe's Supply Co. has the following transactions related to notes receivable during the last 2 months of 2014.
Nov. 1 Loaned $20,000 cash to Sara Rondelli on a 1-year, 12% note.
Dec. 11 Sold goods to Phair, Inc., receiving a $11,700, 90-day, 8% note
16 Received an $12,000, 6-month, 9% note in exchange for Grace Tanner's outstanding accounts receivable.
31 Accrued interest revenue on all notes receivable.
Instructions
(a) Journalize the transactions for Joe's Supply Co. (7 marks)
(b) Record the collection of the Rondelli note at its maturity in 2015. (4 marks)
Answer & Explanation
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