Question

During 2015, LeBron Corporation accepts the following notes receivable.a. On April 1, LeBron provides services to a customer on account. The customer signs a four-month, 9% note for $7,000.b. On June 1, LeBron lends cash to one of the company’s vendors by accepting a six-month, 10% note for $11,000.c. On November 1, LeBron accepts payment for prior services by having a customer with a past-due account receivable sign a three-month, 8% note for $6,000.Required:Record the acceptance of each of the notes receivableOn April 1, LeBron provides services to a customer on account. The customer signs a four-month, 9% note for $7,000. Record the transaction.On June 1, LeBron lends cash to one of the company’s vendors by accepting a six-month, 10% note for $11,000. Record the transaction.On April 1, LeBron provides services to a customer on account. The customer signs a four-month, 9% note for $7,000. Record the transaction.On June 1, LeBron lends cash to one of the company’s vendors by accepting a six-month, 10% note for $11,000. Record the transaction.On November 1, LeBron accepts payment for prior services by having a customer with a past-due account receivable sign a three-month, 8% note for $6,000. Record the transaction

Answer 1

Answer:

The journal entries are as follows:

(a) On April 1, 2015

Notes receivable  A/c          Dr.  $7,000

To Service revenue                                    $7,000

(To record provide services to customer on account)

(b) On June 1, 2015

Notes receivable  A/c          Dr.  $11,000

To Cash                                                    $11,000

(To record company lends to one of the vendors)

(c) On November 1, 2015

Notes receivable  A/c          Dr.  $6,000

To Accounts Receivables                       $6,000

(To record accepts payment for prior services)