Texts: Please show the steps for any equations Jan 20 is incorrect.
Entries for Notes Receivable, Including Year-End
Entries
The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing:
20Y3
Nov. 21.
Received from McKenna Outer Wear Co., on account, a $96,000, 60-day, 3% note dated November 21 in settlement of a past due account.
Dec. 31.
Recorded an adjusting entry for accrued interest on the note of November 21.
20Y4
Jan. 20.
Received payment of note and interest from McKenna Outer Wear Co.
Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year when calculating interest.
20Y3, Nov. 21
Notes Receivable
96,000
Accounts Receivable - McKenna Outer Wear Co.
96,000
Dec. 31
Interest Receivable
320
Interest Revenue
320
20Y4, Jan. 20
Cash
96,000
Notes Receivable
460
Interest Receivable
320
Interest Revenue
96,480