ACCT 201 1st Edition Lecture 22Outline of Last Lecture I. Exam ReviewOutline of Current LectureII. Interest AccuralCurrent LectureExample from page 409 in the textbookMay 1st company X receives a promissory note $1000, two-month note with 8% interest.May 1 Notes Receivable 1000Accounts Receivable 1000A = L + SE+1000 notes rec.-1000 acct. rec.Pg. 410--10,000, 5 month, 9% note June 1stJun. 1 Notes Receivable 10,000Acct. Rec. 10,000Nov. 1 Cash 10,375Notes Pay. 10,000Interest Pay. 375A = L + SE+10,375 cash10,000 N/R+375 RevenueInterest AccrualJune 1 4 mo. Sept. 30 Nov. 1Earned 300 Earned $75Sept. 30 Interest Receivable (10,000 x 9% x 4/12) 300Interest Revenue 300These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.A = L + SE+300 int. rec.+300 int. rev.Nov. 1 Cash 10,375Notes Rec. 10,000Interest Rev. 75Interest Rec. 300A = L + SECash +10,375Interest Rec. -300Notes Rec. -10,000+75
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