Entries for Notes Receivable, Including Year-End Entries The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing:
2017
Dec. 10 Received from Unitarian Clothing & Bags Co., on account, a $75,000,
60-day, 3% note dated December 7.
31 Recorded an adjusting entry for accrued interest on the note of December 7.
31 Recorded the closing entry for interest revenue.
2018
Feb. 5 Received payment of note and interest from Unitarian Clothing & Bags Co.
Journalize the entries to record the transactions. Assume 360 days in a year. Assume February has 28 days in 2018.
2017, Dec. 10 Notes Receivable 90,000
Accounts Receivable-Unitarian Clothing and Bags
Co. 90,000
2017, Dec. 31-Adjusting Interest Receivable 2,025
Interest Revenue 2,025
2017, Dec. 31-Closing Interest Revenue 202.5
Income Summary 202.5
2018, Mar. 10 Cash
Notes Receivable 90,000
Interest Receivable
Interest Revenue