Monday, February 13, 2012

Help with note receivale interest journal entry?

Please help me with this adjusting journal entry.



on october 1, 2010 Johnny's auto salvage issued a 9-month note receivale to Goatman company

at a annuak interest rate of 10%. Principle and interest will be paid at the end of the 9-months. the note was $50,000.



What is the december 31, 2010 adjusting journal entry?Help with note receivale interest journal entry?
2010

Dec 31

Debit Interest Receivable $1,250

Credit Interest Income $1,250 ($50,000 x 10% x 3/12)

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