Account titles and explanations debit credit interest

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Account Titles and Explanations Debit Credit Interest Receivable Notes Receivable Jul 31 75 Jul 1 23,800 Jul 20 6,000 Jul 5 Accounts Receivable $5,100.00 Bal 75 24 7,800 Sales $5,100.00 Bal. 10,000 (to record Lorenz credit card sales) Jul 14 Cash $582.00 Accounts Receivable Service Charge Expense (3% x $600) $18.00 Jul. 5 5,100 Sales $600.00 Bal. 5,100 (to record Visa credit card sales) Jul 20 Cash $6,080.00 Notes Receivable $6,000.00 Interest Revenue (6000 x 8% x 60/360) $80.00 (to record collection of note and interest) Jul 20 Cash $7,930.00 Notes Receivable $7,800.00 Interest Revenue (7800 x 10% x 60/360) $130.00 (to record collection of note and interest) Jul 31 Interest Receivable $75.00 Interest Revenue (10000 x 9% x 1/12) $75.00 (to accrue 1 month's interest on note) (c)Show the balance sheet presentation of the receivable accounts at Jul 31. LORENZ COMPANY Balance Sheet (partial) July 31, 20XX Current Assets Notes Receivable 10,000.00 Accounts Receivable 5,100.00 Interest Receivable 75.00 Total receivables 15,175.00 (a) Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days.) (b) Enter the balances at July 1 in the receivable accounts and post the entries to all of the receivable accounts. (Use T Accounts)
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  • Spring '10
  • Cavendar
  • Accounting, 1966, 1981, 1971, 1969, 1973

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