HW 8 ‘ 4 NOTES RECEIVABLE
On April 1, 2008, Vandolay loans a $10,000 note to a customer opening a new store. The note, which bears 10% annual interest, becomes due on March 31, 2009. Prepare the required journal entry.
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Note Receivable |
Cash |
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On December 31, 2008, Vandolay accrued interest for the portion of the year that the note was outstanding. Prepare the required adjusting journal entry.
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Interest Receivable |
Interest Revenue |
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HW 8 ‘ 4, CONTINUED
On March 31, 2009, Vandolay received all interest and principal for the note. Prepare the required journal entry for the receipt of interest:.
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Interest Receivable
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Interest Revenue [Cash account omitted] |
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Prepare the required journal entry for the receipt of principal.
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Note Receivable
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[Cash account omitted] |
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