Question

Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,800. Music World's journal entry to record the collection on the maturity date is:

Answer 1

Interest revenue = $7800*8%/360*60

Interest revenue = $104

Date Journal Entry Debit Credit

Cash $7,904

Notes Receivable $7,800

Interest Revenue $104