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Svetradugi [14.3K]
2 years ago
10

Vanderbilt Corporation, which utilizes a calendar year as its fiscal year, is the payee on a $12,000, 7%, 8-month note receivabl

e from Stanford Company on October 1st, 2016. Journalize the entry to record the receipt of payment in full on June 1, 2017.
Mathematics
1 answer:
Vedmedyk [2.9K]2 years ago
3 0
Given:
Payee: Vanderbilt Corporation
Notes Receivable from Stanford Company
<span>$12,000, 7%, 8-month 
                               
                                         Debit             Credit

October 1, 2016
Notes Receivable            12,000 
           Cash                                           12,000
*to record notes receivable from Stanford Company

December 31, 2016
Interest Receivable               560
           Interest Income                                560

12,000 * 7% * 8/12 = 560
*to recognize interest earned but not yet received

June 1, 2017
Cash                                  12,560
          Notes Receivable                        12,000
          Interest Receivable                           560
*to recognize full payment on note.</span>
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