Accounting for notes receivable, dishonored notes, and accrued interest revenue Consider the following transactions for Jo Jo Music.
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2011 |
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Dec 6 |
Received a $7,000, 90 day, 12% note on account from Dark Star Music. |
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31 |
Made an adjusting entry to accrue interest on the Dark Star Music note. |
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31 |
Made a closing entry for interest revenue. |
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2012 |
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Mar 4 |
Collected the maturity value of the Dark Star Music note. |
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Jun 30 |
Loaned $11,000 cash to Love Joy Music, receiving a six month, 11% note. |
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Oct 2 |
Received a $2,400, 60 day, 11% note for a sale to Voice Publishing. Ignore cost of goods sold. |
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Dec 1 |
Voice Publishing dishonored its note at maturity; wrote off the note as uncollectible, |
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debiting Allowance for uncollectible accounts. |
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30 |
Collected the maturity value of the Love Joy Music note. |
Requirement
1. Journalize all transactions for Jo Jo Music. Round all amounts to the nearest dollar. (For notes stated in days, use a 360 day year.)