{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Assign_5_-_Solutions_to_Practice_Problem

Interest revenue 1350 ex 822 2011 dec 10 notes

Info icon This preview shows page 6. Sign up to view the full content.

View Full Document Right Arrow Icon
Interest Revenue ................................................... 1,350 Ex. 8–22 2011 Dec. 10 Notes Receivable .................................................. 36,000 Accounts Receivable—Point Loma Clothing & Bags Co. ................................... 36,000 31 Interest Receivable ............................................... 84 Interest Revenue ............................................. 84 Accrued interest. ($36,000 × 0.04 × 21/360 = $84) 31 Interest Revenue ................................................... 84 Income Summary ............................................. 84 2012 Mar. 9 Cash ...................................................................... 36,360 Notes Receivable ............................................. 36,000 Interest Receivable .......................................... 84 Interest Revenue ............................................. 276* *$36,000 × 0.04 × 69/360 Ex. 8–25 1. The interest receivable should be reported separately as a current asset. It should not be deducted from notes receivable. 2. The allowance for doubtful accounts should be deducted from accounts receivable. A corrected partial balance sheet would be as follows: TULIPS COMPANY Balance Sheet December 31, 2012 Assets Current assets: Cash .............................................................................. $138,000 Notes receivable ............................................................ 400,000 Accounts receivable ...................................................... $795,000 Less allowance for doubtful accounts ...................... 14,500 780,500 Interest receivable ......................................................... 20,000
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern