EX 9-22 Entries for notes receivable, including year-end entries

The following selected transactions were completed by Zip-Up Co., a supplier of zippers for clothing: 2011
Dec. 10. Received from Point Loma Clothing & Bags Co., on account, a $36,000, 90-day, 4% note dated December 10.
         31. Recorded an adjusting entry for accrued interest on the note of December 10.
         31. Recorded the closing entry for interest revenue.
2012
Mar.  9. Received payment of note and interest from Point Loma Clothing & Bags Co. Journalize the transactions.

Answer:
2011
Dec. 10
Notes Receivable............................................... 36,000  
                      Accounts Receivable—Point Loma    
                           Clothing & Bags Co. ...............................  36,000  

         31
Interest Receivable............................................ 84  
                         Interest Revenue..........................................  84    
                           Accrued interest.      
                              ($36,000 × 0.04 × 21/360 = $84)  

         31
Interest Revenue................................................ 84  
                        Income Summary.........................................  84  

2012
Mar. 9
Cash.................................................................... 36,360  
                   Notes Receivable .........................................  36,000  
                   Interest Receivable ......................................  84  
                   Interest Revenue..........................................  276*  
                     *$36,000 × 0.04 × 69/360 

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