Answer:
Nov 1    Notes Receivable-C Bohr      66000 Dr
                         Cash                                66000 Cr
Dec 11   Notes Receivable-KR Pine      5400 Dr
                         Sales Revenue                 5400 Cr
Dec 16  Notes Receivable-A Murdock 7200 Dr
                         Accounts Receivable       7200 Cr
Dec 31  Interest receivable                   598 Dr
                         Interest Revenue                598 Cr
Explanation:
We need to calculate the interest accrued on all the notes. We will then add the interests on these notes and credit interest revenue by that amount and debit interest receivable.
<u />
<u>Interest revenue on Note 1</u>
Interest Revenue = 66000 * 0.05 * 2/12 = $550
<u />
<u>Interest revenue on Note 2</u>
Number of days interest is accrued for is 20 days (31-11=20)
Assuming a 360 day year.
Interest revenue = 5400 * 0.07 * 20/360 = $21
<u />
<u>Interest revenue on Note 3</u>
No of days interest is accrued for is 15 (31-16 = 15)
Assuming a 360 day year.
Interest revenue = 7200 * 0.09 * 15/360 = $27
Total Interest revenue = 550 + 21 + 27 = $598