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Accrued interest Practice Question 4 < Previous Reset Ne View Policies Show Attempt History Current Attempt...

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accrued interest

Practice Question 4 < Previous Reset Ne View Policies Show Attempt History Current Attempt in Progress Your Answer Correct An

Date Account Titles and Explanation Debit Credit -1 Notes Receivable 55200 55200 Notes Receivable Sales Revenue 3600 Notes Re

Practice Question 4 < Previous Reset Ne View Policies Show Attempt History Current Attempt in Progress Your Answer Correct Answer - Your answer is partially correct. Skysong, Inc. has the following transactions related to notes receivable during the last 2 months of the year. The company not make entries to accrue interest except at December 31. (Omit cost of goods sold entries.) Nov. 1 Loaned $55.200 cash to C. Bohr on a 12-month, 6% note. Dec 11 Sold goods to K. R. Pine, Inc.receiving a $3,600,90-day, 6% note. Dec 16 Received a $16.800, 180-day, 119 note to settle an open account from A. Murdock Dec 31 Accrued interest revenue on all notes receivable.
Date Account Titles and Explanation Debit Credit -1 Notes Receivable 55200 55200 Notes Receivable Sales Revenue 3600 Notes Receivable 16800 Accounts Receivable 16800 Interest Receivable Interest Revenue Accounts

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Please find below the answer
Statement showing Computations
Particulars Debit Credit
Nov 01
Note receivable Dr                55,200.00
To cash                55,200.00
Dec 11
Note receivable Dr                  3,600.00
To Sales revenue                  3,600.00
Dec 16
Note receivable Dr                16,800.00
To Account receivable                16,800.00
Dec 31
Interest receivable Dr                      639.78
To Interest revenue                      639.78
Interest Accrual Calculation
Nov 01 Note= 55200*6%*2/12                      552.00
Dec 11 Note= 3600*20/365*6%                        11.84
Dec 16 Note= 16800*15/365*11%                        75.95
Total Interest Accrued assuming 365 days in a year                      639.78
.

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