Vandiver Company had the following select transactions.
|
Apr.1, 2014 |
Accepted Goodwin Company”s 12-month, 12% note in settlement of a $30,000 account receivable. |
|
July1, 2014 |
Loaned $25,000 cash to Thomas Slocombe on a 9-month, 10% note. |
|
Dec. 31, 2014 |
Accrued interest on all notes receivable. |
|
Apr.1, 2015 |
Received principal plus interest on the Goodwin note. |
|
Apr.1, 2015 |
Thomas Slocombe dishonored its note; Vandiver expects it will eventually collect. |
Instructions
Prepare journal entries to record the transactions. Vandiver prepares adjusting entries once a year on December 31.