Splish Brothers Company had the following select transactions.Apr. 1,2022July 1, 2022Dec. 31.2022Accepted Goodwin Company's 12-month, 6% note in settlement of a $41,000 account receivable.Loaned $22,000 cash to Thomas Slocombe on a 9-month, 11% note.Accrued interest on all notes receivable.Apr. 1.2023Received principal plus interest on the Goodwin note.Apr. 1.2023 Thomas Slocombe dishonored its note; Splish Brothers expects it will eventually collect.Prepare journal entries to record the transactions. Splish Brothers prepares adjusting entries once a year on December 31. (Creditaccount titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented inthe problem.)Date>Account Titles and Explanation(To record interest accrued on Goodwin note)DebitCredit (To record interest accrued on Thomas note).(To record collection of Goodwin note and interest)(To record the dishonor of Thomas note)0000 000

Lets understand the basics.Journal entry is required to record event and transaction that are occur…

Apr. 1,2022 July 1, 2022 Dec. 31, 2022 Apr. 1,2023 Apr. 1.2023 Accepted Goodwin Company's 12-month, 6% note in settlement of a $41,000 account receivable. Loaned $22,000 cash to Thomas Slocombe on a 9-month, 11% note. Accrued interest on all notes receivable. Received principal plus interest on the Goodwin note. Thomas Slocombe dishonored its note; Splish Brothers expects it will eventually collect.

Apr. 1,2022 July 1, 2022 Dec. 31, 2022 Apr. 1,2023 Apr. 1.2023 Accepted Goodwin Company's 12-month, 6% note in settlement of a $41,000 account receivable. Loaned $22,000 cash to Thomas Slocombe on a 9-month, 11% note. Accrued interest on all notes receivable. Received principal plus interest on the Goodwin note. Thomas Slocombe dishonored its note; Splish Brothers expects it will eventually collect.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 15P: Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed...

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A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed the following information relating to its receivables: The company has a recourse liability of 700 related to a note receivable sold to a bank. During 2019, credit sales (terms, n/EOM) totaled 2,200,000, and collections on accounts receivable (unassigned) amounted to 1,900,000. Uncollectible accounts totaling 18,000 from several customers were written off, and a 1,350 accounts receivable previously written off was collected. Additionally, the following transactions relating to Blackmons receivables occurred during the year: On December 31, 2019, an aging of the accounts receivable balance indicated the following: Required: 1. Prepare the journal entries to record the preceding receivable transactions during 2019 and the necessary adjusting entry on December 31, 2019. Assume a 360-day year for interest calculations and round calculations to the nearest dollar. 2. Prepare the receivables portion of Blackmons December 31, 2019, balance sheet. 3. Next Level Compute Blackmons accounts receivable turnover in days, assuming a 360-day business year. What is your evaluation of its collection policies? 4. If Blackmon uses IFRS, what might be the heading of the section for the receivables reported in Requirement 2?
Swifty Company had the following select transactions. Аpr. 1. 2020 Accepted Goodwin Company's 12-month, 14% note in settlement of a $63,000 account receivable. July 1. 2020 Loaned $65,000 cash to Thomas Slocombe on a 9-month, 12% note. Dec. 31. 2020 Accrued interest on all notes receivable. Apr. 1. 2021 Received principal plus interest on the Goodwin note. Аpr. 1. 2021 Thomas Slocombe dishonored its note; Swifty expects it will eventually collect. Prepare journal entries to record the transactions. Swifty prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record interest at 14%) (To record interest at 12%) (To record principal plus interest on the Goodwin note)
Splish Brothers Company had the following select transactions. Apr. 1, 2022 Accepted Goodwin Company’s 12-month, 6% note in settlement of a $41,000 account receivable. July 1, 2022 Loaned $22,000 cash to Thomas Slocombe on a 9-month, 11% note. Dec. 31, 2022 Accrued interest on all notes receivable. Apr. 1, 2023 Received principal plus interest on the Goodwin note. Apr. 1, 2023 Thomas Slocombe dishonored its note; Splish Brothers expects it will eventually collect. Prepare journal entries to record the transactions. Splish Brothers prepares adjusting entries once a year on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 4/1/227/1/2212/31/224/1/23
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Sheffield Company had the following select transactions. Apr. 1, 2020 Accepted Goodwin Company’s 12-month, 14% note in settlement of a $29,000 account receivable. July 1, 2020 Loaned $31,000 cash to Thomas Slocombe on a 9-month, 12% note. Dec. 31, 2020 Accrued interest on all notes receivable. Apr. 1, 2021 Received principal plus interest on the Goodwin note. Apr. 1, 2021 Thomas Slocombe dishonored its note; Sheffield expects it will eventually collect.
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