accounting for notes receivable\non november 30, tucker products performed computer programming services for…

accounting for notes receivable\non november 30, tucker products performed computer programming services for thomas inc. in exchange for a 5 - month, $64,600, 12% note receivable. thomas paid tucker the full amount of interest and principal on april 30.\nrequired:\nprepare the necessary entries for tucker to record the transactions described above assuming a december 31 year end. if an amount box does not require an entry, leave it blank. round your final answer to the nearest dollar.\nnovember 30 notes receivable x 64,600\nsales revenue x 64,600\n(record issuance of the note)\ndecember 31 interest receivable 646\ninterest income 646\n(record accrued interest income)\napril 30 cash 68,884 x\nnotes receivable 64,600\ninterest receivable 4,238 x\n(record collection of note receivable)\nfeedback\ncheck my work\ninterest income is recognized as earned. interest = principal x annual interest rate x fraction of one year.

accounting for notes receivable\non november 30, tucker products performed computer programming services for thomas inc. in exchange for a 5 - month, $64,600, 12% note receivable. thomas paid tucker the full amount of interest and principal on april 30.\nrequired:\nprepare the necessary entries for tucker to record the transactions described above assuming a december 31 year end. if an amount box does not require an entry, leave it blank. round your final answer to the nearest dollar.\nnovember 30 notes receivable x 64,600\nsales revenue x 64,600\n(record issuance of the note)\ndecember 31 interest receivable 646\ninterest income 646\n(record accrued interest income)\napril 30 cash 68,884 x\nnotes receivable 64,600\ninterest receivable 4,238 x\n(record collection of note receivable)\nfeedback\ncheck my work\ninterest income is recognized as earned. interest = principal x annual interest rate x fraction of one year.

Answer

Explanation:

Step1: Calculate December 31 accrued interest

The principal of the note is $P = 64600$, the annual interest rate $r=12%=0.12$, and the time from November 30 - December 31 is $t=\frac{1}{12}$ years. Using the simple - interest formula $I = P\times r\times t$, we have $I = 64600\times0.12\times\frac{1}{12}=646$.

Step2: Calculate total interest for 5 - month note

The time for the full 5 - month note is $t=\frac{5}{12}$ years. Using the simple - interest formula $I = P\times r\times t$, we get $I = 64600\times0.12\times\frac{5}{12}=3230$.

Step3: Calculate cash received on April 30

The cash received is the sum of the principal and the total interest. So, $Cash=Principal + Total\ Interest=64600 + 3230=67830$.

Step4: Calculate remaining interest income on April 30

The interest already accrued on December 31 is 646. The total interest is 3230. So the remaining interest income to be recognized on April 30 is $3230 - 646=2584$.

Answer:

November 30: Notes Receivable: 64600 Sales Revenue: 64600

December 31: Interest Receivable: 646 Interest Income: 646

April 30: Cash: 67830 Notes Receivable: 64600 Interest Receivable: 646 Interest Income: 2584