Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2019. the company does not make entries to accrue interest except at December 31.
| Nov. 1 | Loaned $30,000 cash to Manny Lopez on a 12 month, 10% note. |
| Dec. 11 | Sold goods to Ralph Kremer, Inc., receiving a $6,750, 90-day, 8% note |
| 16 | Received a $4,000, 180 day, 9% note in exchange for Joe Fernetti's outstanding accounts receivable. |
| 31 | Accrued interest revenue on all notes receivable. |
Instructions
- Journalize the transactions for Elburn Supply Co.
- Record the collection of the Lopez note at its maturity in 2020.
Solution
a.
Elburn Supply Co.
Journal Entries
Journal Entries
b.
Elburn Supply Co.
Journal Entry
Journal Entry
