Question

Louvers, Incorporated, accepted a $15,000, 180-day, 10 percent note from a customer on May 31. On June 30, Louvers prepared a period-end adjusting entry to accrue the $125 of interest owed on the note. The note is honored on November 27.

Prepare the necessary November 27 entry for Louvers by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. If there are multiple debits or multiple credits, please enter the account titles in alphabetical order. View transaction list Journal entry worksheet < 1 Louvers, Inc., accepted a $15,000, 180-day, 10 percent note from a customer on May 31. On June 30, Louvers prepared a period-end adjusting entry to accrue the $125 of interest owed on the note. The note is honored on November 27. Note: Enter debits before credits. Debit Credit Date Nov. 27 General Journal Cash Interest revenue Interest receivable Notes receivable Record entry Clear entry View general journal

Answer 1

November 27 Debit Credit

Bank $15,750

(15,000+15,000*10%*180/360)

Accrued interest income $125

Interest income $625

Note receivable from customer $15,000