La Bamba Company had the following select transactions.
|
Apr. |
1, 2012 |
Accepted Shatner Company’s 1 year, 12% note in settlement of a $20,000 |
|
account receivable. |
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|
July |
1, 2012 |
Loaned $25,000 cash to Richie Rosenberg on a 9 month, 10% note. |
|
Dec. |
31, 2012 |
Accrued interest on all notes receivable. |
|
Apr. |
1, 2013 |
Received principal plus interest on the Shatner note. |
|
Apr. |
1, 2013 |
Richie Rosenberg dishonored its note; La Bamba expects it will eventually collect. |
Instructions
Prepare journal entries to record the transactions. La Bamba prepares adjusting entries once a year on December 31.