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acct 220 409692

HW 8 ‘ 4 NOTES RECEIVABLE

On April 1, 2008, Vandolay loans a $10,000 note to a customer opening a new store. The note, which bears 10% annual interest, becomes due on March 31, 2009. Prepare the required journal entry.

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Note Receivable

Cash

On December 31, 2008, Vandolay accrued interest for the portion of the year that the note was outstanding. Prepare the required adjusting journal entry.

Interest Receivable

Interest Revenue

HW 8 ‘ 4, CONTINUED

On March 31, 2009, Vandolay received all interest and principal for the note. Prepare the required journal entry for the receipt of interest:.

Interest Receivable

Beg. Bal

750

Interest Revenue

[Cash account omitted]

Prepare the required journal entry for the receipt of principal.

Note Receivable

Beg. Bal.

10,000

[Cash account omitted]

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