Question

Android Products, Inc., agreed to accept a $1,000, one-year, 10 percent note from C. Mate. On its maturity date of December 16, Mate honors the note by making a payment of $1,100. That payment consisted of the principal of $1,000 plus interest in the amount of $100 (computed as $1,000 × 10%).
Prepare the necessary December 16 entry for Android by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Date General Journal Debt Credit
Dec. 16

Answer 1

Answer:

                      Android Products, Inc.

                            Journal Entries

Date         General Journal         Debit       Credit

Dec. 16     Cash                            $1,100

                 Notes Receivable                       $1,000

                Interest Revenue                         $100