James Supply Co. has the following transactions related to notes receivable during the last 2 months...

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Accounting

James Supply Co. has the following transactions related to notesreceivable during the last 2 months of 2013. Nov. 1 Loaned $20,000cash to Mary Perkins on a 1-year, 12% note. Dec. 11 Sold goods toEminem, Inc., receiving a $9,000, 90-day, 8% note. The goods cost$6,500. Dec. 16 Received a $8,000, 6-month, 9% note in exchange forMick Jagger’s outstanding accounts receivable. Dec. 31 Accruedinterest revenue on all notes receivable.(assume 360 days per year)Instructions (a) Journalize the transactions for James Supply Co.(b) Record the collection of the Perkins note at its maturity onNovember 1, 2014.

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James Supply Co Journalize the transactions Date Account Titles and Explanation Ref No Debit Credit 1Nov13 Notes Receivable 20000 Cash 20000 To record loan to Mary Perkins 11Dec13 Notes Receivable 9000 Sales 9000 To record 8 note See Answer

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