Answer:
See explanation
Explanation:
Nov. 1 Notes receivable - C. Bohr Debit $52,200
Cash Credit $52,200
To record the loan provided to C. Bohr issuing a 7%, 12-month note.
Dec. 11 Notes receivable - K. R. Pine Debit $1,800
Sales revenue Credit $1,800
To record the sales revenue by issuing a 8%, 90-day note.
Dec. 16 Notes receivable - A. Murdock Debit $4,800
Accounts receivable - A. Murdock Credit $4,800
To record the settlement of an open account by issuing a 180-day, 10% note.
Dec. 31 Interest Receivable Debit $681 (Note - 1)
Interest Revenue Credit $681
To record the interest revenue accrued on December 31.
Calculation:
November 1 Interest from C. Bohr = $52,200 × 7% × (2÷12) = $609
December 11 Interest from K. R. Pine = $1,800 × 8% × (20÷90) = $32
December 16 Interest from A. Murdock = $4,800 × 10% × (15 ÷ 180) = $40
Total Interest = $681
