Question

Journalize the following transactions of Trapper Jon’s Productions. Assume 360 days in a year. If an amount box does not require an entry, leave it blank.

June 23 Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on account.
Sept. 21 The note is dishonored by Radon Express Co.
Oct. 21 Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Radon Express Co. on September 21.

Answer 1

The transactions for Trapper Jon's Productions regarding a note from Radon Express Co. include the receipt of the note, its dishonor, and the final settlement including additional interest. The final amount received was $49,368, which includes the principal plus additional interest for 30 days at 10%

Step-by-step explanation:

To journalize the transactions for Trapper Jon's Productions, we need to record the events in the company's accounting journal. Here are the entries for each transaction:

June 23: Debit Accounts Receivable (Radon Express Co.) $48,000 and Credit Notes Receivable $48,000

Sept. 21: Debit Accounts Receivable (Radon Express Co.) $48,000 and Credit Accounts Payable (Radon Express Co.) $48,000

Oct. 21: Debit Accounts Payable (Radon Express Co.) $48,400, Debit Interest Receivable $400, and Credit Accounts Receivable (Radon Express Co.) $48,000