Answer:
1. April 1, 2017 Accepted Goodwin Company's 12-month, 10% note in settlement of a 30400 account receivable
Dr Notes receivable__30.400
Cr Accounts receivable______30.400
2.July 1, 2017 Loaned 32,400 cash to Thomas Slocombe on a 9-month, 8% note.
Dr Notes receivable__32.400
Cr Cash___________________32.400
3. Dec. 31, 2017 Accrued interest goodwin company
Dr Interest receivable_2.280
Cr Interest revenue_______2280
3. Dec. 31, 2017 Accrued interest slocombe
Dr Interest receivable_1.296
Cr Interest revenue_______1.296
4.Apr. 1, 2018 Received principal plus interest on the Goodwin note.
Dr Cash_33.440
Cr Notes receivable_____30,400
Cr Interest revenue________760
Cr Interest receivable_____2280
5. Apr. 1, 2018 Thomas Slocombe dishonored its note; Vandiver expects it will eventually collect
Dr Accounts receivable_33.944
Cr Notes receivable______32.000
Cr Interest revenue_________648
Cr Interest receivable______1296
Explanation:
Interest calculation Goodwin
Account receivable_30400
Interest rate_________10%
Interest___________3040 12 months
Interest___________2280 From april 2018 to december 2018
Interest____________760 From january 2018 to march 2018
Interest calculation Slocombe
Account recievable_32400
Interest rate_________8%
Interest__________2592
Monthly___________216
Interest__________1296 6 months interest
Interest___________648 3 months interest
