Answer:
Oriole Company
Journal entries:
Jan. 5
Debit Accounts Receivable (Sheldon Company) $20,000
Credit Sales Revenue $20,000
To record sale of merchandise, terms n/15.
Jan. 20
Debit Notes Receivable (Sheldon Company) $20,000
Credit Accounts Receivable (Sheldon Company) $20,000
To record acceptance of 3-month, 8% note
Feb 18
Debit Notes Receivable (Patwary Company) $9,000
Credit Sales Revenue $9,000
To record sale of merchandise for a 6-month, 9% note
April 20
Debit Cash Account $20,400
Credit Notes Receivable (Sheldon Company) $20,000
Credit Interest on Notes Receivable $400
To record full settlement on account
April 30
Debit Cash Account $24,720
Credit Notes Receivable (Willingham Company) $24,000
Credit Interest on Notes Receivable $720
To record full settlement on account.
May 25
Debit Notes Receivable (Potter Inc.) $5,200
Credit Accounts Receivable (Potter Inc.) $5,200
To record acceptance of a 3-mont, 7% note.
Aug 18
Debit Cash Account $9,405
Credit Notes Receivable (Patwary Company) $9,000
Interest on Notes Receivable $405
To record full settlement on account.
Aug 25
Debit Accounts Receivable $5,291
Credit Notes Receivable (Potter Inc.) $5,200
Credit Interest on Notes Receivable $91
Sept. 1
Debit Notes Receivable (Stanbrough Company) $13,100
Credit Sales Revenue $13,100
To record sale of merchandise with a 6-month 10% notes receivable.
Dec. 31
Debit Depreciation Expense - Building $
Credit Accumulated Depreciation - Building $
To record depreciation expense for the year.
Debit Depreciation Expense - Equipment $
Credit Accumulated Depreciation - Equipment $
To record depreciation expense for the year.
Explanation:
Journal entries are prepared to record business transactions in the accounting books. They show which account is to be debited and which is to be credited in the ledger.
Note that the book values of building and equipment were not included in this question, hence no figures were added to the adjusting journal entries for depreciation expenses.
